Personal spending, savings see increases in May

By Sam Craine on Jun 29th, 2010

Income saw an improvement in May, meaning some people may be having a better time dealing with issues such as credit card debt.

According to the Bureau of Economic Analysis, personal income rose $53.7 billion during the fifth month of this year, marking a 0.4 percent increase. Meanwhile, spending money also climbed, as disposable funds expanded by $49 billion.

As a result, it may not be a surprise that consumers found it a little bit easier to validate letting go of their cash. Consumption spending increased 0.2 percent, or $24.4 billion.

While people find it easier to spend money, they will also help the performance of the economy. Much of the country's gross domestic product depends on consumer spending. As the economy improves, so could the prospect of reducing unemployment, which may instill even more confidence in Americans.

However, the BEA report showed consumers were also interested in setting aside some of their cash, as savings as a percentage of disposable income amounted to 4 percent, up from the 3.8 percent seen in April. In all, people saved $454.3 billion during May.

More Money Management News

08-04-2010

Incomes, spending remain flat in June while amount saved increases

07-16-2010

Credit card debt, financial reforms pass Congressional test

07-08-2010

Illinois announces sales tax holiday for back-to-school items

07-03-2010

Fed overdraft rules now in play

07-02-2010

Extension to unemployment benefits delayed

06-29-2010

Personal spending, savings see increases in May

06-26-2010

Obama: Reform will provide strongest consumer protections in U.S. history

06-21-2010

Half of high school graduates can't manage money

06-20-2010

Microsoft providing software to alert credit card debt information theft

06-13-2010

Using debit, credit card debt safely

Related Resources