USA: Household spending increases moderately, inflation continues | Photo credits: Ana Paula Hirama / Creative Commons
WASHINGTON, June 30 (Reuters) – Americans’ consumer spending rose less than expected in May as vehicle supply remained constrained and inflation forced households into trade-offs, a sign the recovery is faltering .
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.2% last month, the Commerce Department said Thursday. April data has been revised down and shows spending rose 0.6% instead of 0.9% as previously reported.
Economists polled by Reuters on average forecast a 0.4% rise in May.
Inflation maintained its upward trend in May. The personal consumption expenditure (PCE) price index rose 0.6% last month after rising 0.2% in April. (Report by Lucia Mutikani; French version Dina Kartit, edited by Sophie Louet)