Consumer spending jumps 0.6% in November, savings rate declines

• December 22, 2017
• realestatelife
• Announcements, Business & Markets, Real Estate, Real Estate Finance

Consumer spending jumped in November, as Americans spent their savings on nondurable goods and services. Outlays rose a seasonally adjusted 0.6% last month, while personal incomes climbed 0.3%, the Commerce Department said Friday. Economists polled had forecast 0.5% increase in spending and a 0.4% gain in incomes. The amount of money individuals save in November fell to a decade-low of 2.9%. Inflation as gauged by the PCE price index edged up 0.2%. The PCE index has risen 1.8% in the past 12 months, up from 1.6% in October. The core PCE index that excludes food and energy rose 0.1%. That was enough to boost the annual rate to 1.5% in November from 1.4% in the prior month, still well below the Fed’s 2% target.