U.S. personal incomes rose 0.2 percent in December, half as fast as personal spending, as wages and
salaries fell for the first time in 14 months, a government report showed.
Incomes had climbed 0.3 percent the month before, the Commerce Department reported in Washington. Personal consumption rose 0.4 percent, compared with a 0.5 percent increase in November. Wages and salaries fell 0.3 percent, the first decline since October 2002.
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”To keep the solid spending going, we need some job growth, as wage and salary increases are faltering,” said Joel Naroff, president of Naroff Economic Advisors in Holland, Pennsylvania.
Consumer buying accounts for about 70 percent of gross domestic product. Spending has risen twice as fast as incomes over the past two years, supported by tax refunds and cash from mortgage.
