A surge in spending last month outpaced gains in personal income, knocking the savings rate to a two-year low.
Consumer spending rose by 1.1 percent last month, more than double the gains in personal income, the Commerce Department reported this week.
Adjusted for inflation, income left over after taxes fell by 0.3 percent, the report said.
The imbalance pushed the personal savings rate to a two-year low of minus 0.5 percent, down from 0.3 percent in October, the report said.
Despite the gains in spending, retailers are reporting weaker holiday sales this sales.
How to Be a Great Conversationalist at Your Office Holiday Party
How Open Floor Plans Are Killing Employee Productivity
5 Ways To Fall Asleep Faster
How to Evaluate Your Employees
10 Things Employees Want More Than a Raise