US incomes, consumer spending see gains in November / The Christian Science Monitor - C... - 0 views
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American incomes rose in November for the fifth straight month, providing much-needed traction for economic recovery. The overall personal income earned by Americans rose by 0.4 percent in the month, according to numbers released by the Commerce Department Wednesday.That fueled a gain in consumer spending, which rose 0.5 percent from October.
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American incomes rose in November for the fifth straight month, providing much-needed traction for economic recovery. The overall personal income earned by Americans rose by 0.4 percent in the month, according to numbers released by the Commerce Department Wednesday.That fueled a gain in consumer spending, which rose 0.5 percent from October.Another jolt of positive news: Consumer confidence rose in a December survey by the University of Michigan and Reuters.The picture is still not one of a brisk rebound for the economy. Much of the gain in incomes continues to come from government stimulus programs, and the gains in income and spending are smaller when inflation is taken into account. (Adjusting for inflation, personal income rose 0.2 percent in November. The gain was just 0.1 percent when the impact of government transfer payments is subtracted.)
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Mr. Bethune predicts that Gross Domestic Product (GDP) will rise in the fourth quarter at a 4 percent annual pace, up from the third quarter's 2.2 percent rate, which the government reported Monday.