U.S. consumer spending rises modestly in November

U.S. consumer spending rose modestly in November as personal income failed to increase from the previous month, the U.S. Commerce Department said Thursday.

Personal spending rose 0.2 percent in November from the previous month, following a revised 0.4 percent gain in October, the Commerce Department said. When adjusted for inflation, personal spending edged up 0.1 percent last month.

Personal income was unchanged in November from the previous month after increasing 0.5 percent in October. Meanwhile, personal savings rate declined to 5.5 percent from a revised 5.7 percent in the prior month.

The price index for the personal consumption expenditure (PCE), a gauge for the inflation level preferred by the U.S. Federal Reserve, increased 1.4 percent in November from a year earlier.

The core PCE price index, excluding volatile food and energy, increased 1.6 percent from a year ago, still below the central bank's target of 2 percent.

The slower pace of consumer spending, which accounts for about two-thirds of economic output, in November might suggest that the U.S. economy could slow down a bit in the fourth quarter of the year.

The U.S. economy grew at an annual rate of 3.5 percent in the third quarter of the year, the fastest pace since 2014, according to the final estimate released by the Commerce Department on Thursday. Enditem