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Incomes and spending post solid gains in November

WASHINGTON — Personal incomes rose in November at the fastest pace in six months while spending posted a second consecutive increase, raising hopes that the recovery from the nation's deep recession might be gaining momentum.

The Commerce Department said this morning that personal incomes were up 0.4 percent in November, helped by a $16.1 billion increase in wages and salaries.

The gain in incomes helped bolster spending, which rose 0.5 percent in November. Both the income and spending gains were slightly less than economists had expected.

After taking inflation into account, after-tax incomes are rising at an annual rate of just 1.2 percent, a pace that many economists believe is too weak to support a strong economic rebound.

Consumer spending is closely watched because it accounts for 70 percent of economic activity.

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