USA: Consumer spending beats expectations in June, inflation picks up | Photo credits: Frontpage / Shutterstock.com
WASHINGTON, July 29 (Reuters) – U.S. consumer spending rose more than expected in June as Americans paid more for goods and services, with monthly inflation at its highest since 2005.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 1.1% last month, the Commerce Department said on Friday.
Data for May has been revised up to show spending rose 0.3% instead of 0.2% as previously reported.
Economists polled by Reuters had forecast an acceleration in consumer spending of 0.9%.
Inflation rose in June. The personal consumption expenditure (PCE) price index jumped 1.0% last month, the biggest rise since September 2005, following a 0.6% gain in May. (Report Lucia Mutikani; French version Alizée Degorce, edited by Sophie Louet)