The U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) reported Thursday morning that personal income increased month over month by less than 0.1% in November, after rising 0.5% in October. Disposable personal income fell by a similar percentage, and personal consumption expenditures (PCE) increased by 0.2%.

Economists were looking for an increase of 0.3% in both income and spending.

The PCE index came in at 1.4%, the same as the October change and, excluding food and energy, the index dipped from 1.8% in October to 1.6%. Real PCE increased by 0.1%.

The PCE index is the Federal Reserve’s preferred measure of U.S. inflation. That the index has returned to its July level is due partly to a stronger dollar that has had the effect of keeping energy prices in check. The PCE index remains solidly below the Fed’s 2% target.

The increase in personal income in November primarily reflected increases in personal interest and rental income and were mostly offset by a decrease in wages and salaries. The increase in real PCE primarily reflects an increase in consumer spending on services.

Spending on durable goods dropped 4.8% month over month and spending on services rose 28.8%. Personal savings fell by 28.2% compared with October.

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