Personal income, consumer spending up slightly in May

by Vicki Needham - 06/28/10 5:49 PM ET

The personal savings rate rose 4 percent in May, the highest level since September 2009, showing consumers aren’t willing to fork out cash for big-ticket items.

The economy relies heavily — about 70 percent — on consumer spending, meaning spending will be a key factor in the nation’s economic recovery. But the 9.7 percent unemployment rate, which is expected to stay around that level when June figures are released on Friday, has led to continued caution on spending.

The private sector must show some job creation in June to further push the recovery forward, as temporary hiring by the federal government for the U.S. Census trails off.

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