* U.S. consumer spending rises for first time since Feb

* U.S. savings rate hits record; DJIA falls

* German inflation up slightly but prices likely to fall

* Japan posts record deflation in year to May

* UBS plans to raise $3.5 billion, sees 2nd qtr loss (For more on the global crisis, click [nCRISIS])

By Bernard Orr and Steve Orlofsky

NEW YORK, June 26 (Reuters) - Reports on Friday showing rising consumer confidence and personal income in the United States suggested the worst recession in seven decades may be abating, but fear still lingered that the economy will take time to bounce back as the U.S. savings rate hit a record.

Data showed that while U.S. consumer spending and income both rose in May as government stimulus money spread through the economy, much of it was being stashed away.

U.S. savings jumped to a record annual rate of $768.8 billion, the highest since records began in 1959, and the saving rate climbed to a 15-year high of 6.9 percent. For details see [ID:nN26322638].