The Department of Commerce said on Thursday that both personal income and expenditures rose in November, while the savings rate fell.
Personal income saw a rise of 0.3%, and disposable personal income (DPI) also rose by 0.3%. Wages and salaries rose modestly, by $6.6 billion in November, compared with an increase of $31.2 billion in October. Supplements to wages and salaries were also up, although less than in October, by $2.7 billion.
Personal consumption expenditures (PCE) went up by 0.4%, outpacing income gains, and the rate of personal savings (disposable personal income (DPI) less personal outlays) fell as well. In November personal saving as a percentage of DPI was 5.3%; in October it was 5.4%.
Robert Dye, senior economist at PNC Economics Division, said in a statement that “consumer mojo is rising.” While wages and salaries “gained a meager 0.1% for the month, just keeping pace with inflation,” he noted that farm income “continued to show robust gains supported by higher crop prices. Interest income popped up in October and November as the yield curve steepened.”