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