Households pushed their savings rate to the highest level in more than 15 years in May as a big boost in incomes from the government’s stimulus program was devoted more to bolstering nest eggs than increased spending. The Commerce Department says consumer spending rose 0.3% in May, in line with expectations. But incomes jumped 1.4%, the biggest gain in a year and easily outpacing the 0.3% increase that economists expected. The savings rate, which was hovering near zero in early 2008, surged to 6.9%, the highest level since December 1993.
May incomes surge, but savings outpace spending
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