Consumer Spending, Incomes Up Slightly in May
By wchung | 29 Jan, 2025

Consumer spending rose slightly in May, a sign that Americans are cautious about the economic recovery.

The Commerce Department says that consumer spending rose 0.2 percent last month, an improvement from April’s reading of no change. Analysts expected spending to edge up only 0.1 percent, according to a survey by Thomson Reuters.

But much of the higher spending likely reflects greater use of electricity and other utilities. Spending on goods actually declined.

Incomes rose by 0.4 percent, slightly less than expected. They were boosted by the temporary hiring of census workers.

The savings rate — or the percentage of income that wasn’t spent — rose to 4 percent, the second straight increase.

WASHINGTON (AP)