Personal income in November increased 0.4%; Biden says economy 'recovering'

Dec. 23 (UPI) -- Personal income of Americans increased in November by 0.4%, off from the 0.7% from the month before but in line with most of the fourth quarter, the Bureau of Economic Analysis said in its monthly report on Friday.

The Personal Income and Outlays report said disposable income for U.S. residents increased as well while personal consumption expenditures inched up 0.1%, according to the BEA said.

"Once again, we are seeing signs of our economy recovering and remaining resilient," President Joe Biden said in a White House statement on Friday. "Today's report shows that incomes are up and inflation is coming down -- while our job market remains strong.

Friday's report came a day after the Commerce Department reported that third quarter gross domestic product rose by 3.2% and raised its estimate for initial claims of unemployment by 2,000 to 216,000, though the four-week moving average declined by 6,250 to 221,750.

"Christmas arrives with gas prices down and grocery store prices showing the lowest increase in a year," Biden said. "Coming the day after we saw unemployment claims remain low and estimates of economic growth revised upward, it is a winning streak for America's families, businesses, and farmers."

The report said the current-dollar personal income in November primarily reflected increases in compensation and personal income receipts on assets. The increase in compensation reflected increases in private wages and salaries in both services-producing industries and goods-producing industries.

"There will be more ups and downs in the year ahead, but we are making progress building an economy from the bottom up and the middle out and I'm optimistic for the year ahead," Biden said.

According to the BEA, personal outlays increased $26.6 billion in November while personal savings rate as a percentage of disposable personal income, rose by 2.4%.

In the meantime, prices for goods dropped by 0.4% and prices for services increased 0.4%. Food prices increased by 0.3% and energy prices decreased by 1.5%. Excluding food and energy, the PCE price index increased by 0.2%.