US household spending rises in April

US households boosted spending for a fourth straight month in April, but the savings rate fell to the lowest in 14 years, suggesting many Americans are tapping savings to balance cost increases imposed by hot inflation.

Consumer spending rose by a seasonally adjusted 0.9% last month, the Commerce Department said Friday, with households spending more on services and autos. The savings rate fell to 4.4%, from a downwardly revised 5% the prior month.

Closely watched inflation reading eased slightly but remained near four-decade high. Recent stock market performance has gotten people talking about a possible US recession.