MW: Savings rate climbs to 14-year high on tax cuts
WASHINGTON (MarketWatch) - The U.S. personal savings rate jumped to a 14-year high of 5.7% in April as after-tax incomes were boosted by provisions of the economic stimulus plan, the Commerce Department reported Monday. The stimulus was supposed to increase spending to give the economy additional support, but the 1.1% rise in real disposable incomes in April mostly went into savings. Real consumer spending fell 0.1%, the second consecutive decline and the 8th decline in the past 11 months. Headline inflation was modest in April, with consumer prices rising 0.1%. Core prices - which exclude food and energy prices - rose 0.3%.
