US consumer spending rose 0.8% in May while incomes swelled 1.9%, a new government report said today.
The gains in spending and income were both stronger than most economists had expected, and were likely helped by tax rebates from a massive US government stimulus programme.
The monthly Commerce Department snapshot is followed closely by the financial markets because consumer spending is the main driver of US economic activity, which has been sapped by a lengthy housing downturn and a credit squeeze.
