Spending Flat Despite Wage Gains
January 30, 2012 by UPI - United Press International, Inc.
WASHINGTON, Jan. 30 (UPI) — Consumer incomes rose in December, while consumer spending was flat, the U.S. Commerce Department’s Bureau of Economic Analysis said Monday.
Incomes rose by $61.3 billion or 0.5 percent, while spending fell by $2 billion or less than 0.1 percent. Disposable incomes rose by $47.1 billion or 0.4 percent, the agency said.
For the year, incomes rose at 0.9 percent with a figure adjusted for inflation, the Commerce Department said.
Private wages and salaries rose by $29.1 billion after falling in November. Payrolls at goods-producing firms rose by $10.8 billion in the month, while compensation at service industry jobs rose by $18.3 billion.
With incomes rising and spending flat, savings rose from $407.8 billion in November to $460.1 billion in December. The rate of savings rose from 3.5 percent in November to 4 percent in December.
The consumer price index rose 0.1 percent in the month, after dropping less than 0.1 percent in November.
Energy and food prices softened the rate of inflation. Core prices, which exclude energy and food, rose 0.2 percent compared to a 0.1 percent rise in November.