MW: Spending up 0.4% as November income jumps 0.6%
By Steve Goldstein
WASHINGTON (MarketWatch) - Americans saw a jump in personal income in November and, despite spending most of it, still took their savings levels to the highest in four months, according to data released Friday. The Commerce Department said personal income climbed 0.6% in November, the largest gain since February, and consumer spending rose 0.4%. Economists polled by MarketWatch had anticipated an 0.4% increase in both personal income and consumer spending in November. October data on income and spending saw small upward revisions. Compared to the same month of 2011, personal income was up 5.1% - the best improvement in five years - allowing spending to rise 5% compared to the same time period, which also was the best gain in five years. An inflation measure the Federal Reserve uses to set interest-rate policy, the PCE price index, fell 0.2% in November. The personal savings rate rose to 3.6% from 3.4% in October.
