U.S. households boosted spending for the fourth straight month in April, but they dipped deeply into their savings to do so.
Consumer spending rose by a seasonally adjusted 0.9% last month, the Commerce Department said Friday. The saving rate fell to 4.4%, the lowest in 14 years, from a downwardly revised 5% the prior month, suggesting that many Americans are tapping their savings to offset cost increases from high inflation.
