U.S. Consumer Spending and Personal Income Rose in May

Updated

U.S. consumer spending rose in May, a sign consumers may be gaining confidence in the economic recovery. Purchases gained 0.2 percent from a month earlier, while personal income advanced 0.4%, the Bureau of Economic Analysis said on its website.

Personal saving rose to 4% of disposable income.

"The labor market is gradually improving, labor income is picking up and that should continue to support spending," Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York, told Bloomberg News before the report. "We see a solid, trend-like growth in spending" in coming months.

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