According to the figures from the Department of Commerce, personal income was up 0.4 percent in November, marking a total gain of $49.7 billion nationwide. In a positive sign for the overall economy, personal consumption expenditures were said to have increased by $47.9 billion, or 0.5 percent.
A report in the Wall Street Journal noted that the income data had shown its strongest increase in six months, and that data for October had also been revised slightly upward, from 0.2 percent to a 0.3 percent increase.
The Commerce Department statistics show that personal income has actually been increasing at a 0.3 percent rate for the past three months, and that disposable personal income has risen by a 0.5 percent margin for two consecutive months.
Another important statistic is the personal savings rate, which had economists for much of the decade as it hovered around the zero percent mark. In the latest figures, the nation’s savings rate stood at 4.7 percent of disposable personal income for the second consecutive month. This, combined with other government statistics showing that consumer credit debt has continued to fall, indicates that Americans remain serious about handling their personal finances in a more responsible manner.
Despite some favorable economic signs, many Americans will not be convinced that a complete recovery is pending until more progress is made in the area of job creation.
Unemployment has continued to produce elevated rates of mortgage and credit card delinquencies, although the nationwide rate did decline somewhat last month from 10.2 percent to 10 percent.
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