Hardware Retailing The Industry's Source for Insights and Information
Personal income rose 0.3% in November 2025, following a 0.1% increase, according to the latest data from the Bureau of Economic Analysis and an analysis from the NAHB Eye on Housing.
Higher wages and incomes drove the growth, however, income growth has cooled from peaking in July 2022 at a monthly increase of 1.1% to 0.3% now.
Real disposable income was up 0.1% in November, up from October’s 0.1% decline. Year over year, real disposable income rose 1% from a 7.2% year-over-year recent peak in June 2023. Personal consumption expenditures rose 0.5% in November while real spending, adjusted to remove inflation, increased 0.3%, with expenditure on goods up 0.6% and spending on services up 0.2%.
With spending growth outpacing income growth, the personal saving rate decreased to 3.5% in November, the lowest level since late 2022, when core CPI was around the peak. Households are using savings to support spending due to inflation affecting compensation gains and payment disruptions caused by the government shutdown. This trend will ultimately lead to a slowing of consumer spending.
