Consumers were reluctant to open up their wallets in April as consumer expenditures were virtually unchanged, increasing less than 0.1%, the Commerce Department reported today.
The savings rate increased to 3.6% of personal income, compared with 3.1% in March. The NCUA, CUNA and NAFCU have all predicted that increased consumer savings will result in an increase in insured shares at credit unions throughout 2010, even though growth rates usually taper off after the first quarter.
April's flat rate of consumer spending follows a 0.6% increase in March.
The Commerce Department also reported that personal income increased 0.4% in April, the same rate as in March.
Private sector wage and salary disbursements increased $24.4 billion in April, compared to a $13.7 billion increase in March.