Personal Income Up Slim 0.3% in April, Lowest in 7 Months

Personal income edged up 0.3% in April, the lowest rate in seven months and only half of the 0.6% increase in consumer spending, the government said today.

The result was a drop in Americans’ savings rate--savings as a percentage of disposable income--from 5.8% in March to 5.5% in April. The rate had been 5.5% in February, up from 5.3% in January.

The Commerce Department reported that incomes totaled a seasonally adjusted annual rate of $4.69 trillion following 8% gains during the three previous months. It was the lowest rate since it dropped to 0.2% last September.

Consumer spending totaled a seasonally adjusted annual rate of $3.68 trillion after 0.5% increases in both February and March. It was the largest gain since it jumped 1.2% in January.