Consumer Spending in U.S. Stalls as Employment Weakens: Economy

Consumer spending stalled in May as stagnant wages and slackening employment held back the biggest part of the U.S. economy.

Purchases were little changed after a 0.1 percent rise the prior month that was smaller than initially reported, according to Commerce Department figures issued today in Washington. Another report showed household sentiment dropped this month to the lowest level of the year.

The data are “consistent with a weakening growth backdrop,” said Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC in New York. “There’s still this propensity for consumers to boost their rate of savings, which is what you’d expect in an environment where they are very skeptical about the outlook for the labor market.”

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- Posted: 2012-06-29 13:08:15

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