US consumer spending registered its biggest monthly gain in nearly six years in May, rebounding from a weak April, the government said today, pointing to momentum in the economy.
Consumer spending accounts for more than two-thirds of US economic activity.
It jumped by a stronger-than-expected 0.9% in May, the sharpest growth since August 2009, after only a 0.1% gain in April, according to Commerce Department data.
Analysts on average had forecast a 0.7% increase in consumer spending last month.
US personal income rose for a second month in a row by 0.5%. Growth in disposable personal income accelerated slightly to 0.5%.
Inflation remained muted, well below the US Federal Reserve's 2% longer-term target for price stability.
The Fed's preferred inflation measure, the personal consumption expenditures price index, rose 0.3% in May after rising less than 0.1% in April.
Stripping out volatile food and energy, the core PCE price index edged up 0.1% for the second month in a row.
