Incomes, spending post on the rise; new-home sales sink

Economists say recovery will require higher levels of income and spending. Personal incomes rose in November at the fastest pace in six months, while spending posted a second straight increase; but economists cautioned that the gains remain too weak to sustain a strong economic recovery. Households are using some income to shrink debt loads and rebuild savings, rather than spend. In a separate report, the sale of new homes plunged unexpectedly last month to the lowest level since April