Recent data released by the Commerce Department revealed that consumer spending declined during May, which may signal a movement toward increased savings.
Retail sales declined for the first time in 11 months, while auto sales were affected by the natural disaster strikes in Japan. Overall, spending decreased 0.2 percent after increasing 0.3 percent during April. Economists had forecast a fall between 0.4 and 0.7 percent.
"Consumers are not panicking," Ryan Sweet, a senior economist at Moody's Analytics, told Reuters. "We should begin to emerge from the soft patch in the second half of the year, a lot of the drags on the recovery are fading."
Economists now anticipate spending to grow during the year's second quarter by as much as 2.5 percent, after the trade deficit settled at a 1.8 percent pace during the first quarter.
The decline in spending has led many experts to believe consumers are now focused on increasing their savings and improving their credit. If the trend continues, American confidence may also increase, as more consumers shift their focus toward becoming financially stable.
Consumers who are interested in further improving their financial standings may also look to fix any inaccuracies or unsubstantiated items on their credit reports that are unfairly lowering their score. Removing these marks may provide some individuals with a quick money-saving credit boost.