Economics
U.S. Consumer Spending Cools While Inflation Tops Fed Goal
- Inflation-adjusted spending unchanged; saving rate rises
- Fed’s preferred price gauges rise by most in six years
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U.S. consumer spending rose less than forecast in May as outlays on services fell and Americans saved more of their incomes. Inflation topped the Federal Reserve’s goal by more than expected.
Purchases rose 0.2 percent from April after a 0.5 percent advance that was less than previously estimated, Commerce Department figures showed Friday. The Bloomberg survey median called for a 0.4 percent gain. Incomes advanced 0.4 percent, matching forecasts, and the Fed’s preferred price gauge rose 2.3 percent from a year earlier, the most in six years and slightly above projections.