Incomes Outpace Spending
Real personal disposable income rose 0.3% in March, while consumer spending was flat after adjusting for inflation. The result pushed up the saving rate to 5.4%, the highest rate in more than a year. In fact, the last time saving was this high, consumers were literally closeted in their homes surviving the second, record-breaking winter in as many years.
The data are even more startling when examined on a year-over-year basis.