WASHINGTON — Personal income rose $352.4 billion or 2.6% in December following a revised 1% increase in November, while personal spending climbed $22.6 billion or 0.2%, the Commerce Department reported Thursday.
The 2.6% income increase was the largest since a 3.3% surge recorded in December 2004. The November income figure was originally reported as a 0.6% increase, while the spending figure was originally reported as a 0.4% jump.
Economists polled by Thomson Reuters had estimated that personal income would rise 0.8% in December, and foresaw a 0.3% spending advance, and a 0.1% climb in core PCE.
Disposable personal income increased $331.3 billion, or 2.7% in December, following a gain of 1% in November. Real disposable income, which is adjusted to remove price changes, rose 2.8% after climbing 1.3% the previous month.
The core PCE, which excludes food and energy, remained virtually unchanged after also staying flat the previous month.
