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Byline: DONALD H. GOLD
Personal incomes rose 0.4% in December, the first gain since August, the Commerce Department said Thursday in another positive sign for an economy struggling to get back on its feet.
The government also reported that personal spending fell 0.2% for the month, due largely to fading interest in 0% auto loans.
The data are more proof that the economy is starting to stabilize.
Year over year, incomes rose 2.7% and spending climbed 3.6%. For the month, wages and salaries, the biggest parts of income, rose 0.6% during the month.
Perhaps most hopeful were signs of life at the nation's factories. Wages and salaries in that sector were about flat, after plunging $5.9 billion in November.
But the strength in wages and salaries isn't clear-cut, says Evelina Tainer, chief economist at Lafayette, Calif.-based Econoday.