Consumers had more money in their pockets in December, but instead of spending it all they tucked away some of it in their savings.
Personal incomes rose $61.3 billion, or 0.5%, to $13.1 trillion in December from November, the highest month-to-month jump in nearly a year, according to the Commerce Department. The increase was fueled in part by rising wages and salaries.
But personal consumption expenditures last month dipped $2 billion, or 0.1%, to nearly $10.9 trillion in an about-face from November.
The savings rate, meanwhile, rose to $460.1 billion, or 4% of disposable personal income — the highest rate in four months and the largest monthly leap since April 2010.
The trend toward mattress-stuffing has raised concerns about slumping demand for goods and services in the future. Consumer spending makes up roughly two-thirds of the country's economic activity.