Savings rate rises to highest since 1995

Personal income fell 0.1% while income rose 0.5%. This resulted in a savings rate of 5.7%, up from 4.5% in April. That is the highest since February 1995.

The core PCE rose at 0.3%, which should be a comforting sign for the Fed. No signs of deflation in those figures.

In this market, a rising savings rate is viewed as a negative as consumers keep their wallets in their pockets which should slow any economic recovery.