Personal Spending, Incomes Gain in December

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ersonal spending rose 0.9% in December, the most in five months, the Commerce Department reported Monday.

The increase — which followed a revised 0.5% gain in November that was larger than originally reported — was larger than economists’ forecast of a 0.7% gain, Bloomberg reported.

An increase in consumer spending could increase demand for new factory goods and the trucking shipments that get them to stores.

Meanwhile, personal incomes rose by 0.4% for the second straight month, and rose 5.4% for the year, compared with 5.9% in 2004, Commerce said.

Inflation-adjusted spending on durable goods such as automobiles jumped 5%, the biggest increase since July.

Spending on services, which account for 60% of spending, rose 0.4% for a second straight month.