Personal income is on the rise in the U.S., and while we’re going out and spending a little bit of that cash, consumers are still keeping belts tightened and saving money. The Commerce Department said today that consumer income is up a little bit over last month, but spending is only up a modest amount.
U.S. household income increased 0.4% last month, the most in three months, says Reuters. Experts had expected that number to be around 0.3%. When factoring in higher prices, after-tax income was up 0.4% in March.
Consumer spending rose 0.3% in March, just below what a median forecast by Reuters had suggested of 0.2%.
Experts attribute the spending number to higher gas prices in the last month. Businesses also restocked shelves at a slower pace in the first quarter, so with less new stuff out there to buy, spending numbers aren’t quite as hopping.
It is spring, after all — perhaps we’ve all just learned there are plenty of rainy days to save for.