US consumer spending recovering

US consumer spending continued to recover in November. From Bloomberg:

American consumers’ spending and incomes climbed in November, indicating the biggest part of the economy is poised to strengthen as the labor market recovers.

Purchases rose 0.5 percent as households took advantage of discounts on autos and electronics, figures from the Commerce Department showed today in Washington. The gain was smaller than anticipated as unseasonably warm weather depressed utility use...

The report also showed incomes climbed 0.4 percent, the biggest increase since May, and inflation cooled. Wages and salaries grew 0.3 percent last month, the biggest gain since April...

The report showed prices stabilized, reflecting discounting by retailers. The Federal Reserve’s preferred price measure, which is tied to spending patterns and excludes food and fuel, was unchanged in November from the previous month, the first time it didn’t increase this year...

Fewer job losses and discounts may be brightening consumers’ moods. The Reuters/University of Michigan final index of consumer sentiment climbed to 72.5, less than anticipated, from 67.4 in November. The figure was lower than the preliminary 73.4 reading, reported on Dec. 11.

Sales of new houses dropped 11 percent to an annual pace of 355,000, lower than the lowest estimate of economists surveyed by Bloomberg News, the other report from the Commerce Department showed. The median sales price decreased 1.9 percent from November 2008.

Based on the November data, US consumer spending has already recovered the high of 2008 in nominal terms, although not in real terms.