Consumer Spending Ticks Up More Than Expected
A tiny shot of good news amid otherwise dismal recent numbers: Consumers opened their wallets a bit more in May, spending 0.2 percent more than in April. Incomes rose 0.4 percent, and the savings rate increased as well, to the highest level since September. Economists expected consumer spending — which accounts for around 60 percent of the economy — to rise 0.1 percent.
The number is not bad, but also not particularly good. It is too low to show the kind of increases in aggregate demand that might help spur the economy to create more jobs, and therefore more evidence of a continuation of the painfully slow labor-market recovery ahead.