Americans’ incomes rose by a healthy 0.6% in April , according to data released by the U.S. Department of Commerce. This follows March’s 0.4% rise and was the largest gain in American incomes since January 2001.
The income figure bested economists’ predictions that said personal incomes would be up 0.5% in April.
Overall, the Commerce Department said consumer spending was up 0.3% in April, while economists polled by the Associated Press had been looking for a 0.2% figure. Consumer spending was up 0.5% in March.
With income growth outpacing spending, the nation’s personal savings rate – savings as a percentage of after-tax incomes — rose to 2.4% in April, a bump up from a 2.2% rise the month before.