US real (inflation-adjusted) consumer spending fell for second month in May and following a dip in growth in the first quarter today's data may prompt a revision in growth estimates.
The Bureau of Economic Analysis reported Thursday consumer spending increased 0.2% after being flat in April. Spending, which accounts for more than two-thirds of US economic activity, fell 0.1% dip in April.Personal income increased 0.4% in May after increasing 0.3% in April. Wages and salaries, the largest component of personal income, increased 0.4% after increasing 0.3percent.
A measure of inflation, meanwhile, rose to 1.8%, the highest level in 19 months. The rise was 0.2% in the month.
Today’s report showed that adjusting spending for inflation, which provides the figures used to calculate gross domestic product, purchases dropped 0.1% last month after falling 0.2% in April.
Growth contracted at a 2.9% pace in the first quarter, the worst performance in five years.
Another report today showed claims for jobless benefits dropped by 2,000 last week to 312,000, progress in the job market, according to figures from the Labor Department.
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