-->Personal income rose a moderate 0.3% in November following a 0.5% gain in October and September's hurricane distorted jump of 3.0%. Rental income rebounded in November after being depressed by hurricanes, while private wages & salaries rose at a less robust pace held back by a second decline in three months for manufacturing.

Consumption data showed a moderate 0.3% rise, boosted by a swing higher in vehicle sales but pushed lower by a sharp decrease in gasoline sales that reflected month-to-month price swings at the pump.

Inflation data proved benign, with the core PCE up only 0.1% in the month and up 1.8% on the year -- the lowest annual rate since March 2004. Total prices dropped a record 0.4% in the month, again reflecting the month's swing in gasoline prices.

A big negative in the report was a sixth straight decline in the savings rate, down 0.2%. Consumers look like they will have to dip into their home equity or draw on their credit cards to fund holiday shopping.