Personal income rose +0.3% MoM in November after +0.1% in October, while PCE increased +0.5% MoM in both months, showing spending continued to run ahead of income growth.

• Personal income increased $30.6B (+0.1% MoM) in October and $80.0B (+0.3% MoM) in November, with November’s larger gain indicating firmer month-to-month income momentum.

• Disposable personal income (DPI) rose $12.0B (+0.1% MoM) in October and $63.7B (+0.3% MoM) in November, matching the income pattern and providing only modest support for spending growth.

• Personal consumption expenditures (PCE) increased $98.6B (+0.5% MoM) in October and $108.7B (+0.5% MoM) in November, keeping consumption growth steady across both months.

• Personal outlays rose $97.8B in October and $107.9B in November, consistent with solid overall spending flows beyond consumption alone.

• Personal saving fell from $843.9B in October to $799.7B in November, and the saving rate edged down to 3.5% from 3.7%, indicating a slightly smaller buffer relative to DPI.

• The October income gain was driven mainly by higher compensation and government social benefits, partly offset by declines in other current transfer receipts from business, farm proprietors’ income, and personal dividend income.

• The November income gain primarily reflected higher compensation and stronger personal dividend income, shifting the composition away from social benefits versus October.

• The PCE price index increased +0.2% MoM in both October and November, while YoY PCE inflation rose +2.7% in October and +2.8% in November (joint largest since March 2024); core PCE inflation (ex food and energy) also rose +0.2% MoM in both months and accelerated from +2.7% YoY to +2.8% YoY.