US consumer spending rose by a faster-than-expected 0.4% in July, as shoppers saved less of what they earned.
It was the fastest growth rate since March, though total spending remains well below its pre-recession highs.
Personal income however grew only 0.2%. Economists had expected both numbers to rise by 0.3%.
The data means that the savings rate in the US - the percentage of income that households choose not to spend - fell to 5.9% from 6.2% in June.
The savings rate has remained close to 6% for the last 18 months.
But prior to the recession, it had fallen almost to zero - meaning households spent all they earned, or in many cases borrowed to spend more.
Historically, the savings rate has been as high as 8%-12%.
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