Consumer Spending, Incomes Rise in December
Income Jump is Largest on Record, Commerce Says
ersonal spending rose by $360.9 billion or 0.8% in December, the Commerce Department said Monday.
The spending increase — which followed a 0.4% increase in November — was coupled with a rise in personal income of $360.9 billion or 3.7%, the highest increase ever, Commerce said.
The spending level was boosted by a one-time $32.6 billion dividend payout by Microsoft Corp., news services reported.
Economists had predicted the 0.8% spending increase, Bloomberg reported.
For the full year, personal incomes rose by 5.4%, the largest annual rise since an 8% jump in 2000, the Associated Press reported.
After-tax incomes rose 4% in December, also helped by the Microsoft payment, AP said.
Spending on durable goods such as automobiles and furniture increase 4.3% after falling 0.5% in November, Bloomberg said.
Spending on non-durables, which account for about 60% of all purchases, rose 0.6% after rising 0.3% the previous month.
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