WASHINGTON – Personal income rose 0.3%, while personal spending increased 0.4% in November as core expenditures spending increased by the smallest amount on record, the Commerce Department reported Thursday.
Core PCE, which excludes food and energy spending and is the Federal Reserve’s preferred measure of inflation, increased 0.8% annually in November. October’s core PCE figure was revised lower to a 0.8% annual increase from a 0.9% rise. Both months’ figures are the lowest on record dating back to 1960. Core PCE in September was also revised lower to a 1.1% increase from a 1.2% gain.
On a monthly basis, core PCE increased 0.1% in November, the first positive monthly reading since June. Monthly core PCE had been flat from July to October.
Disposable personal incomes both increased 0.3% in November.
Economists polled by Thomson Reuters expected incomes would rise 0.2% and consumption would increase 0.5%, according to the median estimate.
Total personal consumption in October was revised higher to a 0.7% increase from the 0.4% gain reported last month. The October figure was the highest in 15 months.
The personal savings rate, as a percentage of disposable personal income, dropped to 5.3% in November, the lowest level since August 2009. The savings rate has declined for five straight months from a high for the year of 6.3% in June.
On Wednesday, the Commerce Department reported third quarter core consumption expenditures increased by the smallest amount on record.
