Consumer Spending Climbs in May
Consumer spending in the United States grew in May as Americans used gains in income to shore up household finances.
Purchases, which account for about 70% of the economy, climbed 0.2% after being little changed in April, Commerce Department figures showed.
The median forecast of 76 economists in a Bloomberg News survey called for a 0.4% rise. Incomes advanced 0.4%, and the saving rate increased to an eight-month high.
“Clearly, the consumer is getting a bit squeezed here,” said Nariman Behravesh, chief economist at IHS Inc. “The second quarter could come in a little lower” than currently projected.
Projections for spending ranged from gains of 0.1% to 0.6%. The previous month’s reading was initially reported as a drop of 0.1%.
The Bloomberg survey median called for incomes to rise 0.4%. The prior month’s income figure was unrevised from the previously reported 0.3% gain.
