Keeping you up to date on the latest data releases.
- Personal Income
Nominal personal income rose 0.1 percent (non-annualized) in November, compared to a 0.4 percent increase in October, and has risen 3.9 percent over the past year. Disposable personal income—personal income less current taxes—was flat in November following a 0.2 percent gain in October. However, increased 0.3 percent in October, after a slight 0.1 percent increase in September. Real (inflation-adjusted) disposable income was also flat in November, given an unchanged reading on PCE inflation. Still, the trend in real disposable income is not a positive one (down 0.1 percent on a year-over-year basis), as nominal gains have failed to keep pace with inflation over the past year. Despite the lack of real income growth, consumption continues to trudge higher, as real personal consumption expenditures rose 0.2 percent in November. Real consumption is trending at an annualized rate of 3.5 percent over the past 3 months, well above its 12-month growth rate of 1.7 percent, due in large part to rising goods purchases (up 8.1 percent over the past 3 months). On the other hand, services consumption has started to decelerate. Its near-term (3 month) growth rate stands at 1.7 percent as of November, a sharp fall-off from its year-over-year trend of 3.1 percent. As consumption growth has recently outpaced disposable income gains, the savings rate has dipped, falling from 5.0 percent to 3.5 percent over the past six months.