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.