The Commerce Department says consumer spending rose 0.4 per cent compared with October. Personal income jumped 0.6 per cent, the biggest gain in 11 months.
Wages and salaries rose $41.1 billion in November. Sandy had reduced wages at an annual rate of $18.2 billion in October. Spending had fallen 0.1 per cent in October compared with September.
With income rising faster than spending, the saving rate rose to 3.6 per cent of income in November, up from 3.4 per cent in October.
Economists remain concerned that income growth is too weak to support sustained increases in spending, especially at a time when Americans are worried about possible tax increases in the new year.