WASHINGTON (AP) — Personal incomes rose more than expected in December and consumer spending increased for the third straight month, helping the economy slowly recover from the worst recession in decades.
The Commerce Department said Monday that incomes rose by 0.4 percent, the sixth increase in a row. That's slightly better than analysts' expectations of 0.3 percent growth.
Income growth was spurred by a large, one-time social security payment. Wages and salaries rose by only 0.1 percent, or $9.1 billion, after increasing 0.4 percent, or $27 billion, in November.
Consumer spending, meanwhile, increased by 0.2 percent, less than analysts' forecasts of 0.3 percent. The department also revised November's figure to show a 0.7 percent increase in spending, higher than the initial estimate of 0.5 percent.
Consumer spending is closely watched because it accounts for about 70 percent of total economic activity. In last year's fourth quarter, consumer spending rose by 2 percent, down from a 2.8 percent increase in the July-September period.
That helped boost the nation's gross domestic product, the broadest measure of the economy's output, by 5.7 percent in the fourth quarter, the fastest growth in six years. The economy grew at a 2.2 perent rate in the third quarter after a record four straight quarters of decline.
Still, many economists are concerned growth will likely sputter to a 3 percent pace or below in the current quarter once temporary factors such as government stimulus and a slowdown in inventory reductions fades. Many economists expect the economy to grow at about a 2 percent pace this year.
That won't be fast enough to reduce the unemployment rate, which currently stands at 10 percent.
Breaking News
Personal incomes, consumer spending up in December
- Breaking News
-
-
Woman found in "house of horrors" in Navarro County
- Police chase ends at Holly Oaks apartment complex
-
Suburban strikes school bus on Fort Worth Highway
A woman was taken by air ambulance to a Metroplex hospital around 4 p.m. this afternoon after she drove into the back of a school bus.
-
Winter blast on the way
Parker County residents are bracing for one of the coldest winter storms this year.
Today, Tuesday and Wednesday will mark one of the coldest days this winter with a wind chill factor reaching 0 degrees Matt Mosier, metrologist for the National Weather Service, said. -
Jack Borden Dies
-
City rescinds boil water notice
The Texas Commission on Environmental Quality has given the City of Weatherford approval to discontinue the boil water notice issued Monday due to the pipe failure at the water plant.
“Our system has taken the necessary corrective actions to restore adequate pressure, disinfectant levels, and bacteriological quality, and has provided TCEQ with the testing results that indicate the water no longer requires boiling,” states a release from the city.”
-
Restaurants given OK to open for business
Restaurants and hotels were given the go-ahead to open today at 3 p.m. provided they have enough water pressure to flush toilets and boil water for consumption.
Hotels were given instructions not to use ice machines.
“We’re keenly aware of the burden we placed on businesses, especially with the downturn in the economy,” Assistant City Manager Robert Hanna said in a 4 p.m. press conference. “The more people work with us to refrain from using water, the quicker we can lower the restrictions.”
- Partial water service anticipated, press conference set
-
Water runs out across city
Homes and businesses across Weatherford are losing their water supply as the result of a major water line break.
Around midnight city officials were alerted that a 24-inch water pipe in the clear well at the water treatment plant had pulled loose. While city crews were on hand immediately to start working on the break, the expert engineers needed for this type of incident could not be reached until around 6 a.m., said Assistant City Manager Sharon Hayes.
- Pipe failure will cause water outage
- More Breaking News Headlines
-
Denver's Largest-Ever Drug Bust Nets Dozens
Marines: No Punishment for Nazi-like Flag
Vets Look to Translate Military Skills Into Jobs
Expert: Removing LA School's Staff 'Appropriate'
Raw Video: School Bus Burst Into Flames
LA School Reopens Amid Sex Abuse Scandal
$25B Settlement Reached Over Foreclosure Abuses
Pentagon: Allow Women Closer to Front Lines
Obama Gives Education Waivers to 10 States
Giffords Aide to Run for Her Seat
LA School in Sex Abuse Scandal Reopens
Winter Slamming North Asia, Parts of Europe
Syrian Forces Renew Bombardment of Homs
States, Banks Reach Foreclosure-abuse Settlement
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Raw Video: U.S. Pullout Celebration
Raw Video: Annual Empire State Building Run-Up
Man Killed in Courthouse Shootout
Air Force Airlines: Leaders Get Polished Service
