Data released by the U.S. Department of Commerce showed a 0.5 percent increase in consumer spending—the largest gain in five months—in November, adding to the 0.4 percent gain seen in October.
In November, personal income rose 0.2 percent—$30.1 billion—and disposable personal income rose 0.1 percent—or $16.2 billion. In October, personal income fell by $11.7 billion, and DPI fell by $25.6 billion.
The rise in spending may be partially attributable an increase in wages and salaries and disposable income. In November, private wages and salaries rose $26.1 billion, compared to a $9.9 billion increase in October. Supplemental income rose $3.3 billion, compared to $2.3 billion in October, and personal taxes rose $14 billion, up slightly from $13.8 billion in October.
Purchases of durable goods increased 2.2 percent in November, compared to 1.2 percent in October. Purchases of motor vehicles and parts accounted for more than 50 percent of the November increase.