Wage growth outpaces spending growth

Nov. 23, 2011 at 11:39 AM
| License Photo

WASHINGTON, Nov. 23 (UPI) -- Consumer incomes outpaced a 0.1 percent rise in consumer spending in October, the U.S. Commerce Department's Bureau of Economic Analysis said Wednesday.

Incomes rose by 0.4 percent or $48.1 billion while disposable incomes climbed 0.3 percent or $30.2 billion.

Spending, however, rose by 0.1 percent in the month or by $15.5 billion, the department said.

Core spending, a figure that excludes the more volatile categories of energy and food, rose 1.7 percent on an annual basis, in line with expectations.

Private wages and salaries rose by $33.6 billion in October, compared to a rise of $28.2 billion in the previous month.

Payrolls at goods-producing firms rose by $6.4 billion in the month, a considerable jump from the $2.4 billion increase in September. Compensation at service industry jobs rose by $27.3 billion, higher than the $22.6 billion in the previous month.

With incomes rising faster than spending, savings has climbed month-to-month from $376.9 billion in September to $400.2 in October, the department said.

Related UPI Stories
Latest Headlines
Trending Stories
Russia says missiles aimed at Syria did not land in Iran
Tunisian democracy advocates win Nobel Peace Prize
Captive orca breeding banned at California's SeaWorld
Wrong drug used in Oklahoma execution
Pentagon to ditch $500M Syrian rebel training program