Consumer spending rebounded and incomes recorded their largest increase in three months in May, adding to data that have suggested the economy has shifted to firmer ground.
The Commerce Department said on Thursday consumer spending increased 0.3 percent last month after a revised 0.3 percent drop in April. Consumer spending in April was previously reported to have declined 0.2 percent.
Last month’s spending increase was in line with economists’ expectations. When adjusted for inflation, consumer spending rose 0.2 percent last month after dipping 0.1 percent in April.
Consumer spending accounts for 70 percent of U.S. economic activity. Though the pace of spending has slowed from the 2.6 percent rate notched in the first three months of the year, consumers will likely continue to drive growth in the second quarter.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.