Consumer Spending Improves in May While Income Rises

Four isolated girls out for shopping.The Commerce Department reported this morning that U.S. consumer spending increased 0.3 in May, outpacing a 0.3 decline in April, the largest drop since September 2009.

Personal income grew to 0.5 percent as more Americans are securing employment and home prices are increasing.

Wages and salaries climbed 0.3 percent while the savings rate grew to 3.2 percent from 3.0 percent.

The inflation oriented core price measure, excluding fuel and food purchases, increased 0.1 percent from April and is up 1.1 percent over a one year period.

Weekly jobless claims lowered by 90,000 to 346,000.

Global equities have made moved higher in trading on Thursday following a lower than expected revision of U.S. GDP growth on Wednesday for the first quarter of 2013, suggesting to many investors that the U.S. economy may not have solid fundamentals for the Federal Reserve to begin scaling back its $85 billion a month bond buying program which has helped to drive interest rates lower and stimulate the U.S. economy.

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