Send Article via Email

- Personal Income +2.6 pct vs +0.8 Consensus
- Biggest Rise Since 12/2004
- Commerce Dept: dividends and bonuses boosted Income
- Personal Spending +0.2 vs +0.3 Consensus
- "Real" Spending +0.2 vs +0.6 in Nov
- Savings Rate 6.5 pct, Highest since May 2009

Personal income in November and December was boosted by accelerated and special dividend payments to persons and by accelerated bonus payments and other irregular pay in private wages and salaries in anticipation of changes in individual income tax rates. Personal income in December was also boosted by lump-sum social security benefit payments. In October, personal income reflected work interruptions caused by Hurricane Sandy. Excluding these special factors, discussed more fully below, DPI increased $44.1 billion, or 0.4 percent, in December, following an increase of $66.5 billion, or 0.6 percent, in November.

Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- increased $21.0 billion in December, compared with an increase of $40.2 billion in November. PCE increased $22.6 billion, compared with an increase of $41.6 billion.

More from MND:

• MBS Commentary: The Day Ahead: Fed's Script Already Out. Will They Stick to it?
• MND NewsWire: Details from Wells Fargo Conference Call on Housing Market
• MND NewsWire: Freddie Mac Green Lights Fed Tapering
• MBS Commentary: MBS RECAP: Sideways Mission Accomplished. FOMC Tomorrow
• Mortgage Rate Watch: Mortgage Rates Modestly Higher Ahead of Important Fed Announcement

If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.