Disposable income, or earnings adjusted for taxes and inflation, rose 0.3 percent in October, the biggest gain since May, after little change in September. A sustained acceleration in worker pay has remained elusive throughout the expansion that began in mid-2009.
A separate report on Thursday showed the labor market remains supportive for consumer spending. Applications for unemployment benefits fell by 2,000 to 238,000 last week, which included the Thanksgiving holiday, according to Labor Department data. That’s close to the median estimate of 240,000 in a Bloomberg survey and below levels seen as consistent with a healthy job market.
Other Details
The saving rate rose to 3.2 percent from 3 percent in September, which was the lowest since December 2007. Wages and salaries rose 0.3 percent from prior month after a 0.5 percent increase. Durable goods spending, adjusted for inflation, fell 0.1 percent in October after a 3.1 percent jump in September that partly reflected auto purchases. Nondurable goods rose 0.5 percent after a 0.1 percent gain. Household outlays on services, adjusted for inflation, were little changed following a 0.2 percent rise.
This article was provided by Bloomberg News.