US personal incomes jump in November
Americans' income picked up far more sharply than expected last month, driving a rebound in disposable incomes and spending.
According to the Department of Commerce, in November US personal incomes and expenditures increased at a month-on-month pace of 0.5% and 0.3%, respectively.
That compared favourably to economists' forecasts for increases of 0.3% and 0.4%.
And the estimate for personal income growth in October was revised up by a tenth of a percentage point to 0.1%.
Adjusted for inflation, Americans' disposable incomes, or what is left over after paying taxes, rebounded by 0.4% on the month after a fall of 0.2% in October.
The price deflator for personal consumption expenditures meanwhile picked up from October's pace of 1.4% to 1.5%, as expected, while at the core level it slipped from 1.7% to 1.6% (consensus: 1.5%).
October's estimate of the rate of increase in the core PCE price deflator was revised higher from 1.6% to 1.7%.
"Continued below-target inflation underlines that interest rates will not be raised again for the foreseeable future, which we expect to help support a gradual rebound in economic growth from the middle of next year onwards," said Andrew Hunter at Capital Economics.