MIXED SIGNALS ON THE ECONOMY : Income Gains Lag Spending; Durables Fall : Economy: The recovery remains fragile, but a December survey shows consumers continue to gain confidence.

Personal-income growth failed to keep up with consumer spending in November, and orders for durable goods fell for the first time in three months, indicating that the nation’s economic recovery remains on fragile ground.

However, analysts were heartened by reports that a new survey shows that consumers continue to grow more bullish about the economy.

The Commerce Department said Wednesday that incomes grew just 0.2%. But it explained that growth was held back by a sharp decline in farm subsidies and other one-time payments that had helped October to a 1.1% gain. Excluding those factors, incomes rose 0.8% in November.

The department said spending rose 0.5% during the same period, the third straight increase but just half of the 1% gains the previous two months.

The department said in a second report that orders for durable goods--items such as trucks and turbines expected to last more than three years--fell 1.9%. It was the first drop in three months.

Orders totaled a seasonally adjusted $122.9 billion, down from $125.3 billion in October. But the department noted that the entire drop was in aircraft and, excluding the transportation component, orders rose 1%.

Analysts said the reports were fresh evidence that the economy continues to grow, but at a slow pace.

“The economy is expanding, but we shouldn’t be celebrating too loudly because it’s not terribly exciting,” said Sung Won Sohn, an economist with Norwest Corp. in Minneapolis.

“The recession may be over, but there is no boom in sight,” agreed John M. Albertine, head of an economic forecasting firm in Washington. “The economy continues to grow slowly and unevenly across business sectors.”

In another report, the University of Michigan’s consumer sentiment index for December rose to 91 from 85.3 in November, according to sources with access to the survey. Weakening consumer attitudes were considered a major factor in holding back economic growth during the last year, and the improvement in attitudes is closely watched as a sign of potential economic strength in the future.

The Commerce Department said incomes totaled $5.15 trillion at a seasonally adjusted annual rate in November, up from $5.14 trillion a month earlier.

Besides reduced farm subsidies, factors that held incomes down were: bonuses for auto workers, restitution payments to Japanese-Americans, postal employee retirement incentives and a rebound in rental incomes in Hawaii after Hurricane Iniki.

Excluding those factors, incomes rose 0.8%, mostly because of a step up in wages and salaries.

Consumer spending totaled an annual rate of $4.20 trillion, up from $4.17 trillion in October.

In November, disposable income--income after taxes--rose 0.1% after jumping 1.2% in October.

The difference between spending and disposable income meant that Americans’ savings rate in November fell to 4.2% from 4.6% a month earlier. It was the lowest since the rate was 4.0% in October, 1990.

“The picture that we are seeing is that personal consumption is outpacing income growth and employment growth,” Norwest Corp.’s Sohn said. “Sooner or later, something will have to give. Hopefully, employment and income will go up, boosting savings rates once more.”

A key element of the income category--wages and salaries--totaled $2.97 trillion, up from $2.95 trillion in October. The back-to-back 0.7% gains in October and November were the biggest increases since a 1.1% jump last February.

The income and spending figures were not adjusted for inflation. When adjusted, disposable income fell 0.1% after rising 0.8% the previous month.

Inflation-adjusted spending was up 0.3% after posting a 0.6% gain a month earlier.

Spending on durable goods fell $1.3 billion, while it rose $4.5 billion for non-durable goods, such as food and fuel. Spending on services jumped $18.7 billion.

Durable goods are closely monitored as a sign of the economy’s health because they are generally expensive and take longer to produce and thus measure both demand and employment prospects.

The department said transportation orders plunged by 10.2% in November after a 21.3% jump in October. The decline in aircraft and parts orders more than offset stronger demand for new cars.

Orders for defense goods, which show wide monthly swings, fell by 6.8% last month after a 44.4% increase in October. With defense excluded, overall orders in November fell by 1.6% after gaining by 2.8% in October.

Orders for non-defense capital goods, an indication of business investment in new equipment, were down 9.7% last month after rising 3.5% in October.