With the threat of the fiscal cliff looming, many businesses began thinking about the tax implications of going off of the cliff, and they adjusted their payouts accordingly. As proof of this, the Bureau of Economic Analysis (BEA) said that personal income soared 2.6 percent in December, building on the 1.0 percent gain in November.

Digging deeper into the data, it is clear that many companies pushed up their dividend payouts to avoid possible higher taxes in 2013. (As part of the fiscal cliff deal enacted on January 2, 2013, dividend taxes went from 15 percent to 20 percent for those individuals earning more than $400,000, but it could have gone up to 39.6 percent had we gone over the fiscal cliff.) Personal dividend income increased 4.5 percent in November and a whopping 34.3 percent in December. There has also been evidence of bonuses being pushed into December, as well, even though BEA does not keep track of that.

Manufacturing wages and salaries rose from $751.4 billion in November to $756.2 billion in December. On average, manufacturing wages and salaries have continued to rise, up 7.2 percent over the past year. This is a reflection of the increased production in the sector overall. In contrast, wage and salary disbursements in all private sectors rose 4.4 percent over the past year.

While income was increasing significantly in December on end-of-year moves, personal consumption was growing more slowly, up 0.2 percent. The largest spending gains were in durable goods, up 1.0 percent (and extending the 2.7 percent increase of November). Based on the GDP data released yesterday, we know that much of this increase was in the motor vehicle sector. Nondurable spending declined 0.2 percent. For the year, though, personal spending numbers have been decent, up 3.6 percent, helping to boost demand for manufactured goods.

With income increasing substantially outstripping spending growth, the savings rate jumped from 4.1 percent in November to 6.5 percent in December. It had been as low as 3.3 percent in September. The savings rate is now at its highest point since May 2009; although, I would expect for it to settle back to reality in January once these one-time-only wage increases are no longer part of the picture.

Chad Moutray is the chief economist, National Association of Manufacturers.

Americans spent less in October for the first time since May. Personal spending declined 0.2 percent in October, pulling back from the 0.8 percent growth in purchases in September. The Bureau of Economic Analysis attributes at least some of the decline to Hurricane Sandy. Even with the weaker spending for the month, the year-over-year change in personal consumption was 3.1 percent, easing from the 3.5 percent pace the month before.

The decrease in spending was larger for durable goods, down 1.9 percent. Nondurable goods purchases fell 0.2 percent, and individuals spent 0.1 percent more on services.

At the same time, personal income was unchanged. Manufacturing wages and salaries declined from $748.6 billion to $746.5 billion, erasing the gains seen in September. Overall, personal income has risen 3.1 percent over the past 12 months, matching the growth in spending.

With personal spending falling and income growth flat, the savings rate rose from 3.3 percent to 3.4 percent. Still, the larger trend has a downward trend in the savings rate, which was 4.1 percent in June.

More recent data suggest that retail spending has picked up since then, with decent holiday spending growth as reported by the National Retail Federation. Consumers appear to not be reacting as of yet to the possibility of the fiscal cliff, with consumer confidence actually rising. That could change, though, with increased coverage of the cliff and with individuals contemplating the possible impact of higher taxes and reduced economic output on their spending patterns.

Chad Moutray is chief economist, National Association of Manufacturers.