Wages and salaries also advanced 0.6 percent in November after falling 0.3 percent a month earlier. The saving rate climbed to 3.6 percent.
Sandy Effect
When the Commerce Department issued the October report, it said Sandy had affected 24 states, though the agency said it couldn’t precisely quantify the effect on spending and income. Auto dealers confirmed a storm disruption that month, and retailers like Urban Outfitters Inc. said the adverse weather at the end of October shuttered shops and curtailed sales.
Industry figures show car and light truck sales rebounded in November as buyers returned to showrooms following the storm. Light-vehicles sold at 15.5 million annual rate last month, the most since 2008, according to data from Ward’s Automotive Group.
Retail sales, an early read on household spending, rose 0.3 percent in November after a 0.3 percent drop the month before, Commerce Department figures showed last week. Ten of 13 major categories showed gains, led by gains at auto dealers, electronics outlets and clothing stores.
Holiday Shopping
The holiday shopping season also started off strongly, with consumers spending 13 percent more during the four-day U.S. Thanksgiving weekend than in the same period in 2011. Purchases rose to $59.1 billion from Nov. 22 through today from $52.4 billion last year, according to the National Retail Federation.
Today’s report showed inflation-adjusted spending increased 0.6 percent in November, the biggest gain since August 2009. Price-adjusted purchases of durable goods, including automobiles, rose 2.9 percent in November after a 0.9 percent drop. Outlays on non-durable goods, which includes gasoline, advanced 0.3 percent last month and receipts on services also climbed 0.3 percent.
In the third quarter, household purchases climbed at a 1.6 percent annual rate, the Commerce Department said yesterday.
Employment Gains