The Commerce Department
reported on Friday that consumer spending in the U.S. rose 0.4 per cent m-o-m in
November, following a downwardly revised 0.3 per cent m-o-m increase
(from +0.4 per cent m-o-m) in October. Economists had expected an advance of 0.5 per
cent m-o-m for November.
Consumer income increased 0.3 per cent m-o-m in November, after
an upwardly revised 0.7 per cent m-o-m surge (from +0.6 per cent m-o-m) in the
previous month. Economists had anticipated
a 0.4 per cent m-o-m gain.
The November increase
in personal income was mainly due to a gain in compensation, which was partly
offset by declines in personal income receipts on assets and personal current
transfer receipts.
Elsewhere, the
personal consumption expenditures (PCE) price index, excluding the volatile
categories of food and energy, which is the Federal Reserve's preferred
inflation gauge, edged up 0.1 per cent m-o-m in November, following an
unrevised 0.3 per cent m-o-m rise in October. This marked the weakest monthly increase in the core PCE price in six months. Economists had predicted the indicator would go
up 0.2 per cent m-o-m.
In the 12
months through November, the core PCE price index soared 2.8 per cent, the same pace as
in the 12 months through October. Economists had projected a gain of 2.9 per cent
y-o-y.