U.S. consumer spending in May was lower than anticipated, while rising prices reduced consumer spending, according to the U.S. Bureau of Statistics’ personal consumption expenditures index (PCE) released on June 30.
Consumer spending accounts for more than two-thirds of U.S. economic activity.
The PCE index happens to be lower than the Consumer Price Index (PCI), which increased 8.6 percent year on year in May.
The price index showed that prices for May increased 6.3 percent year over year, driven by the increases in both goods and services.
There was a 0.2 percent, or $32.7 billion, increase in consumer spending in May, down from the 0.6 percent jump in April….