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Nominal personal income increased at a nonannualized rate of 0.2 percent in November and has increased 2.3 percent over the past twelve months. The gain in November follows a 0.4 percent increase in September and a 0.1 percent decrease in October. Disposable personal income (DPI)—personal income less current personal taxes—increased 0.1 percent during the month, which follows an increase of 0.5 percent and a decrease of 0.2 percent in September and October, respectively. After controlling for price changes, real disposable personal income increased 0.1 percent in November, following a 0.2 percent decrease in October and over the past year, is up 0.6 percent.
Real personal consumption expenditures increased 0.5 percent in November, marking the largest monthly gain since February of last year. This follows increases of 0.2 percent and 0.4 percent in September and October, respectively, and over the past year, consumption has increased 2.6 percent. The increase in overall consumption during November was the result of increases in consumption of both goods and services. Goods consumption increased 0.7 percent, which is mostly the result of a 2.2 percent increase in consumption of durable goods. The monthly increase in the consumption of durable goods is the largest since October 2010. Services consumption increased 0.4 percent for the month, following increases of 0.1 percent in each of the previous two months. On a year-over-year basis, goods consumption has increased 4.7 percent and services consumption has increased 1.5 percent. The larger increase in consumption relative to income resulted in a decline in the personal savings rate from 4.5 to 4.2 percent, and the savings rate has declined each of the past two months.