Personal Income, Savings Rise

CNBC reported this morning that consumer spending rose 0.2 percent in December, the third straight monthly gain, but less than analysts expected.

Analysts had expected consumer spending to rise 0.3 percent for the month of December. Consumer spending is vital to the U.S. economy as it normally accounts for over two-thirds of economic activity.

Personal income climbed 0.4 percent in December after increasing 0.5 percent in November. Analysts were looking for a 0.3 percent increase in personal income for December. For all of 2009, personal income dropped 1.4 percent, the largest fall since 1938.

Americans saved more in December, as the savings rate rose to 4.8 percent from 4.5 percent in November. Consumers continue to stock away more money as they grapple with a weak labor market and deleveraging from years of carrying too much debt during the housing boom.