Cautious Consumers Barely Spent More in May
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Consumer spending rose slightly in May, a sign that Americans are cautious about the economic recovery.
But much of the higher spending likely reflects greater use of electricity and other utilities; spending on goods actually fell.
The Commerce Department said that consumer spending rose 0.2 percent last month, an improvement from April's reading of no change.
Analysts expected spending to edge up only 0.1 percent, according to a survey by Thomson Reuters.
Incomes rose by 0.4 percent, slightly less than expected. They were boosted by the temporary hiring of census workers.
The savings rate - or the percentage of income that wasn't spent - rose to 4 percent, the second straight increase.
© 2010 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report. But much of the higher spending likely reflects greater use of electricity and other utilities; spending on goods actually fell.
The Commerce Department said that consumer spending rose 0.2 percent last month, an improvement from April's reading of no change.
Analysts expected spending to edge up only 0.1 percent, according to a survey by Thomson Reuters.
Incomes rose by 0.4 percent, slightly less than expected. They were boosted by the temporary hiring of census workers.
The savings rate - or the percentage of income that wasn't spent - rose to 4 percent, the second straight increase.
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- Watch it dry up more, in the second half.
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