The Commerce Department released its consumer spending report this morning, saying Americans saved more in the month of March.Consumer spending climbed a seasonally adjusted 0.3%, while income rose slightly faster at 0.4% mainly because of higher government-benefit payments. This makes the savings rate at 3.8%, a little higher from the rate in February of 3.7%, which was the lowest since the recession. According to some economists, income will have to rise faster if we want consumers to start spending more for goods and services. Because consumer spending accounts for up to 70% of U.S. economic activity, if Americans aren’t buying then the economy will not be growing.
