Income Up 2.6 Percent in December On Dividends, Bonus Payments Push

Personal income surged 2.6 percent in December as companies, mindful of coming tax increases, paid out dividends and bonuses, the Commerce Department said Jan. 31.

Income in November was also revised up to show an increase of 1 percent rather than 0.6 percent.

Consumer spending, meanwhile, rose 0.2 percent in December.

With a big jump in income and modest spending, the personal saving rate rose to 6.5 percent from 4.1 percent in November.

“Personal income in November and December was boosted by accelerated and special dividend payments to persons and by accelerated bonus payments and other irregular pay ...