Thrifty consumers

One positive outcome of the recession is that Americans are saving more of their income than at any time since 1993, the Wall Street Journal reports.

Frugality is both admirable and useful in tight economic times. Americans who lived during the Great Depression learned the lesson and never forgot it.

Thus, even though consumer confidence has revived gradually in recent months, Americans are still watching their money, spending carefully.

The consumer sentiment index increased for the fifth consecutive month, the Journal reported — to 70.8 in June, up from 68.7 in May. The index, published by the University of Michigan, assesses consumer attitudes on the business climate, personal finance and spending. (It reached 96.7 in 2007.)

Personal income rose 1.4 percent in May, boosted in part by the federal government's payments to seniors as part of the economic stimulus package. Yet consumer spending edged up only 0.3 percent from April, suggesting caution.

The stimulus plan was designed to encourage spending, but the trend toward saving more money shows consumers have other ideas.

Whether the caution slows the overall recovery remains to be seen. But business spending has improved, the Journal noted, and first quarter economic decline was not so severe as originally thought.

Although unemployment was at 9.4 percent in May and expected to range higher in June, several economists predict an end to the recession by the third quarter.

But consumers will continue to save, and some analysts suggest that thrift may become a lifelong habit.