WASHINGTON - American's incomes in May rose twice as fast as their spending, pulling the country's personal savings rate up to its highest point since the beginning of the year. The U.S. Commerce Department reported that personal income, including wages, interest and government benefits, rose 0.4% in May. That's slightly higher than the 0.3% gain analysts were predicting. At the same time, spending increased only 0.2%. Some analysts are reading this as a sign that the intent of the Fed's interest rate increases-to slow down consumer spending and thereby slow the economy-might be working. Consumer spending accounts for two-thirds of all economic activity. It was the second consecutive month that incomes rose faster than spending. The personal savings rate rose 0.6% in May from 0.4% the previous month. May's rate was the highest since 0.8% in January.
Consumer savings, income rises
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