U.S. Incomes Surge 0.5% In December, Though Consumer Spending Was Flat

income raise consumer spending
income raise consumer spending

By Martin Crutsinger

WASHINGTON -- Americans' income rose in December by the most in nine months, a hopeful sign for the economy after a year of weak wage gains. But consumers didn't spend any more than they had in November. Instead, they ended up saving all their additional income.

Economists noted that income rose last month largely because of strong hiring. The economy added 200,000 jobs in December. More jobs mean more income available to spend.