Statement from Chief Economist Mark Doms on Personal Income and Outlays in December 2009

The U.S. Commerce Department’s Bureau of Economic Analysis today released personal income and outlays data for December 2009. Personal income rose 0.4 percent, real disposable personal income increased 0.3 percent, and real personal consumption expenditures advanced 0.1 percent. Real consumer spending rose 2.0 percent at an annual rate in the fourth quarter, following a gain of 2.8 percent in the third quarter.

“This morning’s personal income and spending report is another positive sign that our economy continues to move in the right direction. Real consumer spending continued to rise in December, and measures of consumer confidence rose in both December and January,” said Commerce Department Chief Economist Mark Doms. “Real spending rose moderately in both the third and fourth quarters of 2009, following no growth during the first half of the year. Real disposable income also increased in the fourth quarter, partly reflecting growth in government benefits. Further stimulus expenditures will support the ongoing expansion in consumer spending and income.”

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