June 1, 2009

Incomes up, spending down in April

Consumer spending in the United States dropped in April as incomes rose, a boost to savings, the Department of Commerce said Monday.

Incomes climbed a seasonally adjusted 0.5 percent, after falling 0.2 percent in March, the department reported. But spending fell 0.1 percent in April after falling 0.3 percent the previous month.

Savings in April rose to 5.7 percent of disposable income, the highest rate since February 1995, even with disposable income rising 1.1 percent.

Excluding food and fuel costs, the figure, known as the core personal consumption expenditures rose 0.3 percent on the month, following a 0.2 percent rise in March.

Including all prices, personal consumption expenditures rose 0.1 percent in April. In March, the PCE index was unchanged from February.