US consumer spending picks up as inflation hits three-year high (opens original article in a new tab)

US consumer spending rose in May as inflation hit a three-year high, with the PCE price index increasing 4.1% annually, while personal income and employment data showed mixed signals.

• US consumer spending increased in May despite a 4.1% annual rise in the PCE price index, the highest since April 2023
• Inflation-adjusted consumer spending rose 0.3% in May after stalling in April
• Underlying inflation pressures remain as prices in services and goods continue to rise
• Personal income increased 0.7% in May, with disposable income up 0.3% after inflation adjustments
• Unemployment claims fell to 215,000 in the week ending June 18, showing labor market resilience