U.S. families increased their spending more slowly in March with their income continued rising, the U.S. Commerce Department reported Monday.
U.S. personal income rose 0.4 percent in March, after a 0.3-percent gain in February, the department said.
The personal consumption expenditures (PCE) rose 0.3 percent in March, following a stronger rise of 0.9 percent in February, according to the report.
The U.S. savings rate, personal saving as a percentage of disposable personal income, edged up to 3.8 percent in March, slightly higher than the 3.7 percent in February and remained well above the 2.1-percent average savings for all of 2007 before the financial crisis.
Economists say economic uncertainty has pushed Americans to save more of their additional income. Consumer spending accounts for about 70 percent of U.S. economic activity.
The U.S. economic growth slowed to 2.2 percent in the first quarter, a deceleration from the 3 percent recorded in the fourth quarter of last year. Real personal consumption expenditures, the major engine of the U.S. economic growth, rose 2.9 percent in the first quarter -- the fastest pace in more than a year. |