The Commerce Department reported on Wednesday that consumer spending in the U.S. fell 0.4 percent m-o-m in November after a revised 0.3 percent m-o-m increase in October (originally a 0.5 percent m-o-m gain). This was the first monthly fall since April. Economists had forecast the reading to show a 0.2 percent m-o-m drop.

Meanwhile, consumer income decreased 1.1 percent m-o-m in November, following a revised 0.6 percent m-o-m decline in the previous month (originally a 0.7 percent m-o-m fall). Economists had forecast a 0.3 percent m-o-m drop.

The November drop in personal income reflected primarily reflected declined in proprietors’ income (both nonfarm and farm) and government social benefits that were partly offset by a gain in compensation.

The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, was unchanged m-o-m in November, following a revised 0.2 percent m-o-m increase in the prior month (originally flat m-o-m). Economists had projected the index would edge up 0.1 percent m-o-m.

In the 12 months through November, the core PCE increased 1.4 percent, the same pace as in the 12 months through October. Economists had forecast an advance of 1.5 percent y-o-y.