High Frequency Economics - Personal incomes rose 0.5% in November, a tenth above the consensus 0.4%, but spending was much stronger than expected, up 1.1% against a consensus 0.7%. Real spending rose 0.5%; the

implied consensus was 0.3%. Note too Oct spending was revised up 0.2%. The headline deflator rose 0.6%, a couple of tenths more than the implied consensus; the core rose 0.2%, as expected. Given the strong core retail sales numbers and the surge in energy prices, the consensus forecasts for both nominal and real spending were bafflingly low; you should now expect a wave of modest GDP forecast upgrades for Q4.