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.

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