US Personal Spending rises more than forecast in May

FXStreet (Mumbai) – The official data released on Thursday in the US showed consumer spending rose more than expected in May, a sign consumer spending may be on the rise due to sustained job growth witnessed since Q4 2014.

Consumer spending rose 0.9% in May, beating the estimate of at 0.7% rise. Spending had stalled in April, raising questions whether the economy would sustain a rate hike. Personal income matched estimates to climb 0.5% in May, after a 0.4% growth witnessed in April.

Meanwhile, inflation as gauged by the personal consumption expenditure (PCE) price index increased 0.3% in May. The core PCE index that excludes food and energy, meanwhile, increased 0.1% from the month before, and climbed 1.2% in the 12 months ended May.

The 0.9% rise in spending is the biggest since August 2009. Meanwhile, strength in core inflation pce indicates the inflation may be slowly inching towards Fed’s 2% inflation target.

The official data released on Thursday in the US showed consumer spending rose more than expected in May, a sign consumer spending may be on the rise due to sustained job growth witnessed since Q4 2014.

(Market News Provided by FXstreet)