Three economic indicators out today show more stagnation and uncertainty about the direction of the national economy.  Consumer spending rose in November by 0.4%, not as good as October’s 0.7%, and under the consensus estimate of 0.5%:

Consumer spending rose for a fifth straight month in November and incomes rose slightly more than expected, government data showed on Thursday, reinforcing views of a solid economic growth pace in the fourth quarter.

The Commerce Department said spending rose 0.4 percent after increasing by an upwardly revised 0.7 percent in October.

Economists polled by Reuters had expected spending, which accounts for about 70 percent of U.S. economic activity, to rise 0.5 percent last month after a previously reported 0.4 percent gain in October.

Adjusted for inflation, the rise in spending was 0.3%.  Inflation has remained at a 50-year low all year, and that continued into November, as the Fed began its QE2 policy.  Personal incomes also rose in November by 0.3%.  At the same time, the savings rate dropped a little from 5.4% to 5.3% as people began to have a little more confidence in their personal situations.

However, the durable-goods report is not anywhere nearly as good.  After dropping 3.1% in October, new orders dropped another 1.3% in November.  While transportation took the biggest hit, defense spending hid a larger drop in private-sector orders:

New orders for manufactured durable goods in November decreased $2.6 billion or 1.3 percent to $193.7 billion, the U.S. Census Bureau announced today. This decrease, down three of the last four months, followed a 3.1 percent October decrease. Excluding transportation, new orders increased 2.4 percent. Excluding defense, new orders decreased 2.3 percent. Transportation equipment, also down three of the last four months, had the largest decrease, $6.2 billion or 11.9 percent to $45.5 billion. This was due to nondefense aircraft and parts, which decreased $6.6 billion.

Inventories continued to increase as well:

Inventories of manufactured durable goods in November, up eleven consecutive months, increased $1.9 billion or 0.6 percent to $319.1 billion. This followed a 0.6 percent October increase. Transportation equipment, also up eleven consecutive months, had the largest increase, $1.1 billion or 1.3 percent to $84.3 billion.

Larger inventories with flat or declining demand put downward pressure on future orders.  That seems to be especially true in transportation, which has fallen sharply over the last several months.  Capital goods declined 4.6% in November, even with a 16.3% increase in defense orders of capital goods; nondefense capital goods declined 6.8%.  Manufacturing, which had been the bright spot a year ago in the economy, is now struggling.

Consumers may be taking the lead on keeping the economy afloat, but not enough to spark larger demand or drain inventories.   We’re just continuing the flat, stagnation-level economy that we’ve seen all year long.