May witnesses slight increase in US consumer spending

May witnesses slight increase in US consumer spendingThe U. S. Commerce Department said on Monday that consumer spending rose in May after lying flat in April.

According to the department, with unemployment at 9.7 percent, spending rose in May by 0.2 percent, helped by two consecutive months of rising incomes.

After rising 0.5 percent a month ago, Incomes rose 0.4 percent in May.

The Commerce Department also said that consumer spending rose by $22 billion.

For the third consecutive month of gains, real disposable income rose 0.5 percent in the month.

It was also reported that personal savings, up to 3.8 percent in April, rose to 4 percent in May.

It has further been reported by the commerce department that core prices, which exclude energy and food items, rose 0.2 percent in the month, slightly higher than the consensus forecast of 0.1 percent.

Including food and energy, the price index for all items fell less than 0.1 percent in May. (With Inputs from Agencies)