·
Personal income (4.3% AR, YTD) rose slightly more than expected last
month. It was the fourth consecutive 0.3% monthly gain in income.
· Growth in wage and salary disbursements has been relatively firm recently, up 0.4% last month and between 0.3% and 0.6% during the last four months (3.4% AR, YTD). Personal transfer payments rose 0.3% after having been unchanged in October (8.7% YTD, AR). Personal interest income fell for the fifth straight month (0.2% YTD, AR).
· Personal consumption expenditures (4.7% YTD, AR) rose slightly more than expected and in 4Q are 1.8% (AR) above the 3Q average. Durable goods purchases rose 1.5% following sharp declines the prior two months. Unit sales of light vehicles recovered some in November to a 15.94 mil. rate. Spending on nondurable goods rose 0.4% after a sharp 0.8% October gain. Spending on services rose 0.4% (5.4% YTD, AR).
· Disposable personal income rose 0.4%
(8.2% YTD, AR) for the fourth consecutive month. Personal tax payments
rose a slight 0.1% but are down sharply for the year.
· The PCE price deflator rose 0.1%, slightly below the 0.2% gains of
the prior three months. Prices were up 2.1% (YTD, AR). Less food and
energy, the price deflator rose just 0.1% (1.7% YTD, AR).
