Personal Spending for May Rose a Stronger-Than-Expected 0.5%

The latest personal income and spending numbers indicated that the consumer continued to spend in May despite weakness in income.

According to figures released by the Commerce Department at 8:30 a.m. EDT, personal spending increased by 0.5% in May, a tenth of a percent higher than economists were forecasting. April rates were revised to 0.5% from 0.4%.

Personal income, meanwhile, increased 0.2% for May, compared with forecasts of 0.3%. April income rates were revised down a tenth of a percent to 0.2%.

Meanwhile, the National Association of Purchasing Management's purchasing managers' index rose to 44.7 in June from 42.1 in May. It's the indicator's highest reading in six months and stronger than the expected 42.8. Because the reading is below 50, it indicates that the sector is still contracting, but it is receding at a slower rate than it was in previous months.