Personal Income Rose 0.6% Last Month

Today is the final trading day of November. It looks like the S&P 500 is about to snap its three-month losing streak. November may go down as the index’s best month since March.

This morning, the government said that personal income rose 0.6% last month. That’s a good number as it suggests that the Q3 GDP may be followed by another good one for Q4.

Consumer spending rose by 0.3% in October, and the figure for September was revised up to 0.7%.

Solid spending and income growth this fall could be a sign that consumers have the capacity to step up purchases during the holiday-shopping season. Steady hiring and modest wage gains are allowing some households to spend more. Spending on goods intended to be used quickly, such as gasoline and clothing, rose sharply in October. Spending on services fell.

Here’s how income and spending have fared since the recession ended.

The futures market now thinks there’s a 94% chance that the Fed will raise rates in two weeks. After that, however, it’s not so clear. Futures traders don’t expect another hike until June, and even that is nearly 50-50.

Posted by on November 30th, 2016 at 9:56 am

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