Spending Climbs While Savings Drops

American consumers, the driving force behind the supercharged economy, spent with abandon in February at a pace more than double their income growth. It dragged the personal savings rate to a record low.

Continuing their buying binge, Americans increased their spending 1 percent last month, the fastest pace since December, the Commerce Department said.

Meanwhile, Americans’ personal income, which includes wages, interest and government benefits, increased by just 0.4 percent last month, the slowest pace since December.

With spending outpacing income growth, the rate of personal savings, or savings as a percentage of after-tax income, fell to 0.8 percent in February, a record monthly low. In January, the rate was 1.4 percent.