Washington, DC, December 22, 2005--Consumer spending was up 0.3% in November, matching a 0.3% gain in incomes, the Commerce Department said Thursday.
Economists were expecting incomes to rise 0.4% in November, with spending up 0.3%.
The personal savings rate remained steady at -0.2% from October. The October level was revised up from the initial estimate of -0.7%.
The headline personal consumption expenditure price index decreased a record 0.4% in November, bringing its year-over-year increase down to 2.7%, the lowest since July.
The core personal consumption expenditure price index increased 0.1% in November, bringing the year-over-year increase down to 1.9% from 1.9% in October. It's the smallest year-over-year gain since March 2004.
Fed officials have said they want core inflation to remain between 1% and 2%. Incomes from wages and salaries increased 0.2% in November.
Real inflation adjusted spending increased 0.7% in November.
Real spending on durable goods rose 2.9% in November. Spending on nondurable goods increased 0.9%, while spending on services increased 0.2%.
Disposable incomes (after taxes) increased 0.3% in November. After adjusting for inflation, disposable incomes rose 0.7%.
