US consumer spending rises
US consumer spending rose slightly more than expected in May even as savings touched their highest level in eight months, pointing to a recovery that remains on solid ground.
The Commerce Department said today spending edged up 0.2 per cent after being flat in April. Analysts polled by Reuters had expected consumer spending to rise 0.1 per cent. Consumer spending is being closely watched to gauge the strength of the economic recovery after a series of reports suggested growth is slackening.
A government report on Friday showed consumer spending, which normally accounts for 70 per cent of economic activity, rose at a 3 per cent pace in the January-March quarter -- slower than the 3.5 per cent the government had estimated last month. Spending adjusted for inflation increased 0.3 per cent last month after being flat in April. Real spending on services increased 0.3 per cent, while spending on goods rose 0.2 per cent, reversing the prior month's 0.1 per cent decline, the Commerce Department said.
Personal income increased 0.4 per cent after gaining 0.5 per cent in April. Markets had expected income to rise 0.5 per cent last month. Real disposable income climbed 0.5 percent following a 0.6 per cent increase the prior month.
Source: The Irish Times |
