Consumer spending rose more than forecast in May as the federal tax rebates propelled the biggest gain in incomes in almost three years, enabling households to overcome soaring fuel bills, Bloomberg reported.

The 0.8 percent rise in purchases was the biggest since November, the U.S. Commerce Department said. Incomes grew 1.9 percent, the most since September 2005, and measures of inflation were lower than anticipated.

Americans used the stimulus checks to buy electronics, clothes and furniture, helping to keep the economy expanding. However, a slump in consumer confidence, a loss of jobs and tighter credit raise concern that spending will slow once the rebate effect fades.

Economists had forecast that spending would rise 0.7 percent, according to the median of 72 estimates in a Bloomberg News survey. The spending estimate for April was revised up to 0.4 percent from an originally reported 0.2 percent increase.

The gain in incomes was almost five times larger than a predicted 0.4 percent gain. Disposable income, or the money left over after taxes, surged 5.7 percent, the largest increase since May 1975.

The report also contained good news on inflation for Federal Reserve policy-makers. The central bank’s preferred gauge of prices, which excludes food and fuel, increased 0.1 percent, compared with a 0.2 percent median estimate in the Bloomberg survey.

Because the increase in spending was smaller than the gain in incomes, the savings rate jumped to 5 percent, the highest since March 1995, from 0.4 percent in April.

About $70.8 billion worth of tax rebate checks were distributed through June 20, according to the U.S. Treasury Department.