Existing home sales fell -1.7% in November to a seasonally adjusted annual rate (SAAR) of 5.35 million, but were up +2.7% over the year. Housing prices rose for the 93rd straight month to a median price of $271,300 (+5.4% Y/Y), but inventory fell to a 3.7 month supply, down from 4.0 months a year previously. While the Commerce Department reported that housing starts were up 3.2% to a 1.365 million SAAR and at a 10-month high, the National Association of Realtors report noted that there were not enough new homes being built at affordable prices to alleviate the inventory shortage.

Personal income was up +0.5% in November, with tax and inflation adjusted real disposable income up +0.4% and the savings rate increasing +0.1% to 7.9%. Consumer spending increased by $64.9 billion (+0.4%), including a $22.6 billion increase in spending on goods led by a $12.6 billion increase in the motor vehicle purchase SAAR, and a $17.1 billion increase in service spending led by a $9.2 billion increase in the health care spending SAAR. Overall annual PCE inflation was up +0.1% to 1.5%, but core PCE inflation, which excludes the volatile food and energy components, was down -0.1% to 1.6%.

The final estimate of Q3 GDP was unchanged at 2.1% as upward revisions to consumer spending and nonresidential fixed investment were offset by downward revisions to inventories. Compared to Q2, exports and residential fixed investment grew more quickly, private inventories slowed their rate of decrease, consumer and government spending slowed, and nonresidential fixed investment decreased at a faster rate. Corporate profits from current production, which are adjusted for inventory valuation and capital consumption, fell ‑$4.7 billion compared to a +$75.8 billion increase in Q2. Domestic financial corporation profits were down -$4.7 billion, and domestic nonfinancial corporations were down -$5.5 billion, while rest of the world profits were up $5.5 billion.