Personal income, consumer spending up slightly in May

Personal income rose 0.4 percent along with consumer spending, which was up 0.2 percent in May, providing some positive news in an otherwise bleak month for the nation's slowly recovering economy. 

Personal income increased $53.7 billion, consumer spending was up $24.4 billion and disposable personal income increased $49 billion — up 0.4 percent — in May, according to the Labor Department on Monday. 

Estimates were about what analysts expected as the economy leaned further into a spending recovery, while jobs are still hard to come by for many. 

In April, personal income at 0.5 percent and disposable income at 0.6 percent were slightly above May's levels. Consumer spending picked up a bit in May compared with an increase of less than 0.1 percent in April, based on revised estimates.

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.