US: Income growth a little soft - Wells Fargo
Despite slowing in other parts of the economy, a 0.4% consumer spending increase in November on top of big upward revisions to prior data means the consumer is on track to be a major driver of Q4 GDP growth, explained analysts at Wells Fargo.
“After having posted the largest monthly increase of the year in October, personal income increased again in November, climbing 0.2% from the month prior, a little softer than the 0.3% that was expected. Most income categories were positive including wages and salaries which accounted for more than a third of the overall increase.”
“Amid an otherwise sturdy backdrop for consumer spending, durable goods outlay have been only measured as a higher interest rate environment raises the cost of lending that often facilitates durable goods spending. Today’s report showed some newfound strength here with a 0.9% increase in November consumer durables spending.”