Consumer spending rises as households dip into savings

"...the personal savings rate fell to 4.6 percent in June, after jumping to 6.2 percent in May..."

Savings are huge, but they're not without end. In the absence of income gains households have been dipping into savings to sustain consumption. There's still plenty of savings there thanks to lots of deficit spending, however, these savings could be depleted rapidly if the government does not do something to restore incomes fast.