U.S. Personal Spending Flat in May -- Update
By Sarah Chaney Cambon
Household spending was flat last month as consumers pulled back
on big-ticket goods purchases and spent more on services, in what
has been an uneven recovery from the Covid-19 pandemic.
Personal income fell 2% in May from April, as the impact faded
from government stimulus checks sent out earlier in the year. April
spending was upwardly revised to a 0.9% increase from a previously
reported 0.5% rise.
Household spending has been supported by rising vaccination
rates and ample household savings from rounds of government
stimulus when the pandemic restricted businesses and activities.
Customers have been going out more as states and cities lift the
Stronger demand also is driving up prices. The core
personal-consumption expenditures price index, which excludes often
volatile food and energy items, rose 0.5% in May from a month
earlier and 3.4% from a year earlier.
Write to Sarah Chaney Cambon at firstname.lastname@example.org
(END) Dow Jones Newswires
June 25, 2021 09:03 ET (13:03 GMT)
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