WASHINGTON (2/2/16)--Rising income levels in December failed to spur a corresponding increase in consumer spending, reports released Monday by the government revealed.
Despite upswings in both disposable income and wage and salary growth, consumer spending edged higher by 0.1% during the month, with Americans purchasing fewer cars and trucks than in November (MarketWatch Feb. 1).
Furthermore, low-slung oil prices allowed drivers to fork over less for gas.
“Consumers (capped) off the strongest spending year in a decade with a frugal month,” said Gregory Daco, head of U.S. economics at Oxford Economics (MarketWatch).
But decreased levels of spending combined with rising wage growth fueled an increase in the U.S. savings rate to a three-year high of 5.5% from 5.3%.
Additional numbers from Monday’s reports: