Personal spending rose 0.5% in November as incomes grew by 0.4%, the largest amount since May, the Commerce Department reported Wednesday.

Core personal consumption expenditures, which excludes food and energy costs, was unchanged after rising 0.2% in October. Core PCE increased 1.4% from a year ago, the same amount as in October.

Total consumption expenditures increased 0.6% in October, revised down from the 0.7% increase initially reported. Consumption expenditures for energy goods and services increased 8.8% year-over-year, the first increase since October 2008.

Personal incomes rose 0.4% following an upwardly revised 0.3% increase in October from the 0.2% gain initially reported. Private wage and salary disbursements increased $16.1 billion in November following a $3.2 billion increase in October. Disposable personal income grew 0.5%.

Economists polled by Thomson Reuters expected consumption to increase 0.6% for the month and for incomes to increase 0.5%, according to the median estimate. Economists expected core PCE to increase 0.1%.

Consumption expenditures for durable goods decreased 1.1% from a year ago while expenditures for non-durable goods increased 3.7%.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.