Higher wages and insurance payments arising from a busy hurricane season boosted U.S. personal income in October, while consumer spending rose mildly amid sagging demand for cars.

Meanwhile, the Institute for Supply Management reported today that its index of manufacturing business activity came in at a reading of 58.1 in November, slightly lower than the 59.1 reading posted in October, but nonetheless the 30th straight month of growth in the factory sector. Any index reading above 50 is an indicator of expansion.

The U.S. Commerce Department said today that personal income increased at a seasonally adjusted monthly rate of 0.4%, after rising 1.7% in September and falling 1% in August. October personal consumption grew 0.2% after rising 0.5% in the prior month.

Excluding the effects of hurricanes Katrina and Rita, personal income increased 0.4% in October, 0.5% in September, and 0.2% in August.

Disposable personal income, or income after taxes, increased 0.3%, following a 1.9% rise in September. Income after taxes and inflation rose 0.2% in October.

Spending on durable goods designed to last three years or longer fell 2.5% after a 2.9% slide the previous month and an 8.8% fall in August. Auto sales have weakened since big car makers in the U.S. discontinued blockbuster summer discount pricing. Nondurable goods spending rose 0.6% after a 1.6% increase the previous month, while spending on services increased 0.5% after 0.7% growth in September.

A price index for personal consumption expenditures excluding food and energy rose 0.1% in October after 0.2% growth in September. In annual terms, the price index for personal consumption expenditures minus food and energy increased 1.8% in October. The year-over-year climb in September was 2%.
In the ISM report, the prices index stood at 74.0 in November, from 84.0 in October and 78.0 the month before that.

Hiring looked healthy in November. The employment index hit 56.6, from 55.0 in October. The ISM also said its production index was at 60.6, from October’s 62.0, while the November new orders index came in at 59.8, after 61.7 the month before.

The inventories index was at 49.3, from October’s 48.1. Contracting stocks often signal production will rise in the future to replenish those stocks.

Separately, U.S. initial jobless claims fell 17,000 to a seasonally adjusted level of 320,000 in the week ended Nov. 26, the U.S. Labor Department said. The four-week moving average of initial jobless claims fell 1,250 to 322,500. Claims for the week ended Nov. 19 were revised to a 32,000 increase after previously being estimated to have been up 30,000.