By Rex Nutting
WASHINGTON (MarketWatch) - Real consumer spending increased a seasonally adjusted 0.3% in January to the highest level since May 2008 in a further sign of a modest economic recovery, the Commerce Department estimated Monday. Adjusted for inflation, real spending on goods increased 0.8%, while spending on services remained anemic, rising 0.1%. After adjusting for inflation, after-tax incomes fell 0.6% in January, mostly due to large non-withholding tax payments reflecting higher incomes from investments and bonuses in 2009. With spending rising faster than incomes, the personal savings rate fell to 3.3% of disposable income from 4.2% in December. It was the lowest savings rate since October 2008.
