Wage growth outpaces spending growth

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.