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U.S. Economy: Income Gains Boost Spending, Savings

Incomes grew faster than spending in May, making it possible for American households to simultaneously increase savings and support the economic recovery.

Consumer purchases rose 0.2 percent, exceeding the median forecast of economists surveyed by Bloomberg News, after little change the prior month, Commerce Department figures showed today. Incomes climbed 0.4 percent, and the savings rate increased to the highest level in eight months.