MW: U.S. wages jump 0.5% in December, spending dips
By Jeffry Bartash
WASHINGTON (MarketWatch) - The wages of U.S. workers rose sharply in December while spending fell slightly, according to the latest government data. Personal income climbed 0.5% last month, while personal spending dipped less than 0.1%, the Commerce Department said Monday. As a result, the personal savings rate rose to 4.0% from 3.5% in November. Economists surveyed by MarketWatch had forecast income to rise by 0.4% and spending to increase by 0.1%. Adjusted for inflation, disposable income (money leftover after taxes) rose 0.3% last month. Meanwhile. inflation as measured by the personal consumption expenditure price index edged up 0.1% in December. The core PCE index, which excludes food and energy, rose 0.2%. The core PCE index was expected to edge up 0.1%. For all of 2011, personal spending increased 2.2% even though real disposable income only rose 0.9%. The PCE index climbed 2.4% last year, or 1.8% on a core basis.
