U.S. Personal Income Climbs More Than Expected In November

After reporting a slight uptick in U.S. personal income in the previous month, the Commerce Department released a report on Friday showing a notable acceleration in the pace of income growth in the month of November. The report said personal income climbed by 0.5 percent in November after inching up by a revised 0.1 percent in October. Economists had expected personal income to rise by 0.3 percent compared to the virtually unchanged reading originally reported for the previous month. Real disposable income, which is adjusted to remove price changes, also rose by 0.4 percent in November after dipping by 0.2 percent in October. The Commerce Department said personal spending also climbed by 0.4 percent in November following a 0.3 percent increase in October. The spending growth matched economist estimates. Excluding price changes, personal spending rose by 0.3 percent in November after inching up by 0.1 percent in the previous month. The report also said personal saving as a percentage of disposable personal income ticked up to 7.9 percent in November from 7.8 percent in October. Meanwhile, a reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth slipped to 1.6 percent in November from 1.7 percent in October. "Continued below-target inflation underlines that interest rates will not be raised again for the foreseeable future, which we expect to help support a gradual rebound in economic growth from the middle of next year onwards," said Andrew Hunter, Senior U.S. Economist at Capital Economics.