Incomes Fall for First Time Since Jan.; Spending Rises

Americans’ incomes fell in November for the first time since the beginning of the year although spending continued to rise, the Commerce Department said today.

U.S. personal income was down $8.2 billion or 0.2% in November from October levels to a seasonally adjusted annual rate of $4.18 trillion.

The decrease in incomes followed a strong rise of 1.7% in October and a 0.6% gain in September. It was the first monthly drop since January, when incomes fell 0.4%.

Spending Rises 0.6%

But personal consumption spending rose 0.6% in November after an increase of 1% in October and no change in September.

As a result, the personal savings rate--which is savings as a percentage of disposable income--fell to 4.3% in November from 5.1% in October and 4.4% in September.

The department said the drop in November incomes reflected two special factors--big subsidy payments to farmers in October and bonuses paid to auto industry workers in October.

Excluding the impact of these two factors, personal income went up by 0.6% or $23.6 billion in November, the department said.

Wages and salaries rose $8.8 billion in November after a $36.6-billion rise in October.

Manufacturing payrolls fell $2.8 billion last month after rising by $11.4 billion in October when auto employees received bonus payments.

Disposable Income Falls

Disposable personal income--personal income less personal tax and non-tax payments--fell by $10.5 billion in November.