Income, Spending Disappoint As Savings Rate Plunges To Lowest Since 2013

Both income and spending growth accelerated in October at the fastest rate in 2018 but were expected to slow in November and did so, with personal income up just 0.2% MoM in November, while spending rose 0.4% MoM (a big slowdown from the 0.8% upwardly revised October print).

And year-over-year growth in both income and spending slowed...

While spending growth outpaces income growth, it was private wages that decelerated notably (+4.5%, vs +4.8% last month) with government wages +2.8%, vs +2.8% last month.

And so with spending outpacing incomes once again, Americans' savings rate plunged to its lowest since March 2013...