Incomes Fall for First Time Since Jan.; Spending Rises

WASHINGTON — Americans’ incomes fell in November for the first time since the beginning of the year although spending continued to rise, the Commerce Department said today.

U.S. personal income was down $8.2 billion or 0.2% in November from October levels to a seasonally adjusted annual rate of $4.18 trillion.

The decrease in incomes followed a strong rise of 1.7% in October and a 0.6% gain in September. It was the first monthly drop since January, when incomes fell 0.4%.

Spending Rises 0.6%

But personal consumption spending rose 0.6% in November after an increase of 1% in October and no change in September.

As a result, the personal savings rate--which is savings as a percentage of disposable income--fell to 4.3% in November from 5.1% in October and 4.4% in September.

The department said the drop in November incomes reflected two special factors--big subsidy payments to farmers in October and bonuses paid to auto industry workers in October.

Excluding the impact of these two factors, personal income went up by 0.6% or $23.6 billion in November, the department said.

Wages and salaries rose $8.8 billion in November after a $36.6-billion rise in October.

Manufacturing payrolls fell $2.8 billion last month after rising by $11.4 billion in October when auto employees received bonus payments.

Disposable Income Falls

Disposable personal income--personal income less personal tax and non-tax payments--fell by $10.5 billion in November.