The consumers in U. S. continue to save more than what they save in recent years and are giving more attention to their spending. A report recently launched by Commerce Department showed that Americans saved 4.8 percent of their incomes in December rising by 0.3 percentile points from 4.5 percent the previous month.

On the other hand the spending rose 0.2% last month lower than expected a 0.3% jump. The figure for spending did not match November's figure, which saw a 0.7% increase.

As we see the quarterly data, we get that Consumer Spending increased by 2 percent in the fourth quarter ending December while there was a 2.8 percent increase in the third quarter ending September.

The spending on energy utilities, essentially electric and natural gas companies saw a growth during the quarter, while spending on goods saw a decline of 0.5 percent. Spending on non-durable goods fell 0.8 percent, while spending on durable goods rose 0.2 percent.

There was an unexpected rise in personal incomes in December. The Commerce Department said Monday that incomes rose by 0.4 percent while the expectations were of 0.3 percent growth. The increase in income showed that the economy is recovering from the worst slowdown in decades. This increase in income contributed most to increased saving rate as the consumers are now more aware to their savings and spending very carefully.

The government is having a close eye on consumer spending as it contributes a very large part of the economy. The consumer spending accounts for about 70 percent of total economic activity. Though we have seen a growth in spending in past half year but consumers remain cautious as they are trying to focus more on their savings.