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Personal spending rose less than forecast in November

Washington, D.C. -- A report released Friday by the Commerce Department showed that U.S. consumer spending edged up 0.1% in November, less than forecast and reflecting an economy that continues to struggle.

Incomes also grew 0.1% in November, the weakest in three months, after a 0.4% rise in October. The median estimate for spending in a Bloomberg News survey of economists called for a 0.3% advance.

“In the absence of a significant pickup in income, we won’t see a big boost in spending,” Yelena Shulyatyeva, an economist at BNP Paribas in New York, told Bloomberg. “The momentum will slow in the fourth quarter, but the economy is still growing.”

Projections among the 79 economists in the Bloomberg survey for spending ranged from increases of 0.2% to 0.6%.

Wages and salaries decreased 0.1% after a 0.6% gain.
 

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