Restrained Consumer Spending Curbs Growth Optimism: Economy

Consumer spending grew less than forecast in May, putting a damper on the strength of the projected rebound in U.S. economic growth this quarter.

Purchases, which account for about 70 percent of the economy, climbed 0.2 percent last month after being little changed in April, the Commerce Department reported today in Washington. The report also showed Americans squirrelled away more money for a rainy day as incomes and inflation picked up.