US ECON: Income Rises 0.3%, PCE Up 0.5%, Deflator Cools

* Nov nominal income Rises 0.3% for second straight month
* Nominal Spending Up 0.5% with 0.1 pp upward revision to October
* Core PCE price index cools to 2.2%

Income rose in line with expectations while spending growth was a touch slower than forecast. Nominal personal income increased by 0.3% between October and November, up from a 0.2% gain in the prior month. Income in the prior month was revised lower to a 0.3% gain versus the 0.4% increase previously reported.

Nominal spending rose by 0.5%, compared to an expected rise of 0.6%. Spending in the prior month was revised higher, however, neutralizing the disappointment in the November gain. IFR had expected the strong retail sales report to boost PCE by 0.8% so we'll have to throttle back our Q4 GDP estimate, working down from our baseline forecast of 2.8% AR.