Consumer spending edges up

November pace of growth in spending, income slows; both readings close to forecasts.

NEW YORK (CNN/Money) - Consumer spending rose at the start of the holiday shopping season in November but at a much slower pace than in October, while income growth also slowed, the government reported Thursday.

Spending by individuals edged up 0.2 percent last month versus a revised 0.8 percent gain in October, the Commerce Department reported. Economists surveyed by Briefing.com had forecast a 0.3 percent rise. Spending by consumers is watched closely since it fuels about two-thirds of the nation's economy.

The increase in spending was mostly driven by inflation. Stripping out the effects of higher prices, spending was flat with October.

Personal income rose 0.3 percent in November after increasing 0.6 percent in October. The consensus forecast was for a 0.2 percent rise. The increase in income adjusted for inflation was 0.2 percent.

Total personal savings more than doubled in the month but the savings rate, while also improving, remained low at 0.3 percent of income less taxes, up from 0.1 percent in October. That means Americans were saving only 30 cents of every $100 of take-home pay.

Source: CNN MONEY