"This report is another indication that consumer spending is firming as we finish out the year," said Tim Quinlan, economic analyst at Wells Fargo. Consumer spending accounts for about two-thirds of the nation's economic activity, so signs of improvement bode well for the recovery.
Private sector wage and salaries were also up, increasing by $6.6 billion last month. But the increase wasn't as large as it was in October, when salaries jumped $31.2 billion.
While earnings and spending increased, the data showed that Americans did not save as much money in November as they did the prior month.
Americans saved $614.8 billion in November, compared with $622.8 billion the prior month. And personal savings as a percentage of disposable income slipped to 5.3% from 5.4% in October.
"The figures are seasonally adjusted, but the modest decline in the savings rate could be showing that the holiday shopping season will be much better than what we have seen over the last sever years," Quinlan said.
Quinlan's forecast calls for a 5% increase in holiday sales compared to last year, which would be the best year-over-year improvement since 2005, he said.
Meager increase forecast for holiday retail salesPersonal income is up, and so is spending
