WASHINGTON (AP) – U.S. consumer spending rose solidly last month, good news for the economy.
The Commerce Department said Wednesday that consumer spending increased 0.4 percent in May on top of a 1.1 percent surge in April. Spending on durable goods such as autos and appliances grew 0.6 percent, down from a 2.6 percent jump in April.
The numbers show that consumer spending, which accounts for about 70 percent of U.S. economic activity, picked up in the spring after getting off to a slow start in 2016. The economy grew at a lackluster 1.1 percent pace from January through March, partly because consumer spending grew at the slowest pace in two years.
Still, Americans’ incomes grew just 0.2 percent in May, down from 0.5 percent in April.
But it’s unclear how American consumers will respond to Britain’s decision last week to leave the European Union, which so far has rattled global financial markets and raised fears over prospects for the world economy.