U.S. March Personal Incomes Rise, Consumers Save More

U.S. household income rose in March by the most in three months but consumers socked away part of the extra cash and only modestly increased spending, suggesting economic growth ended the first quarter on a soft note.

The Commerce Department said on Monday consumer income rose 0.4 percent last month. Analysts had expected a gain of 0.3 percent. After-tax income climbed 0.2 percent in March when accounting for higher prices.

Consumer spending rose 0.3 percent last month, also just below the median forecast in a Reuters poll of 0.4 percent.

When taking into account inflation, which has been fed in recent months by higher gasoline prices, spending was up 0.1 percent.

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