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US income and spending up in May

US spending - Boost from Obama package
US spending - Boost from Obama package

US government figures show that consumer spending in the country recorded a modest gain in May, suggesting a recovery in one of the most important parts of the economy.

The Commerce Department reported that consumer spending rose 0.3% in May from April, in line with most analysts' forecast.

The May increase in personal spending - which accounts for two-thirds of US economic activity - came after zero change in April and a 0.2% drop in March.

Consumers benefited from President Barack Obama's $787 billion economic stimulus, passed in February, which helped drive personal incomes up a hefty 1.4% in May, the strongest gain in a year.