Income of Americans Climbs 6% in 1990 : Economy: The U.S. reports an increase in unemployment in December, but earnings advanced because of longer working hours and higher pay.

WASHINGTON —  Americans earned 6% more in 1990 than they did in 1989--and spent every bit of it, the government said today.

The Commerce Department said personal incomes slowed from a 7.7% gain in 1989, while consumer spending slipped from a 6.6% advance in 1989 to a 6% increase last year.

Incomes in December rose 0.7% to a seasonally adjusted annual rate of $4.75 trillion, the largest increase since a similar 0.7% gain last March.

A Commerce Department spokesman said the increase came from longer hours worked and higher rates of pay. Unemployment actually rose in December.

The December advance followed a revised 0.4% increase in November, which originally had been reported to be 0.3%.

Consumer spending also rose 0.7% to a seasonally adjusted annual rate of $3.75 trillion, up from a revised 0.1% advance in November. It was the biggest increase since a 0.8% gain last September.

The increase was due largely to utilities and new car sales.

Consumption in November first was said to have been unchanged from the previous month.

Consumer spending is considered a barometer of economic health since it accounts for about two-thirds of the nation’s economic activity.

Americans’ saving rate--savings as a percent of disposable income--was unchanged from November’s 4.2%. That matched last August’s rate and was the highest since 4.7% last July.

For the year, the saving rate was 4.5%, slightly less than the 4.6% rate posted in 1989.

A higher saving rate means less dependence on foreign capital since funds thus would be available domestically for business investment.

The report said Americans’ income after taxes rose 0.7%.

The spending and income figures were not adjusted for inflation. When adjusted, spending rose 0.5% after declining 0.1% in November.

The key component of the income category--wages and salaries--jumped $26.8 billion after falling $2.2 billion in November. The November decline first was reported to have totaled $3.9 billion.