American's savings grew, spending slipped in April
Americans spent less and saved more in April, reversing recent trends, as personal income rose by the smallest amount since last June, the Commerce Department reported. Personal income increased 0.6 percent in April for an annually compounded rate of 7.4 percent. Perhaps more significant for the immediate future of the economy is the sharp contraction in personal consumption expenditures for April, up only 0.2 percent -- less than a quarter of the March increase. Personal spending, at the expense of savings, had been a major influence keeping the economy growing for the past several month s.