WASHINGTON — Personal income rose 0.8% in March for the third straight month, the government said today, while consumer spending dropped 0.4% to its lowest level in five months.
The difference means that Americans' saving rate--savings as a percentage of disposable income--was up one-half of a percentage point to 5.8%.
The Commerce Department said incomes totaled a seasonally adjusted annual rate of $4.67 trillion on top of 0.8% jumps in both January and February. The increases were originally reported to have been 0.7% in January and 0.9% in February.
Consumer spending totaled a seasonally adjusted annual rate of $3.66 trillion after a 0.6% gain in February. It was the lowest since an 0.3% advance last October.