Consumer spending up because income is rising..

Consumer spending up because income is rising..

Summary:

  • Consumer spending in the U.S. rebounded in May following the largest drop in more than three years
  • Household purchases rose 0.3 percent, the housing recovery is gaining momentum and consumers are becoming more confident.
  • Rising home prices, an improving job market and bigger income gains will help households overcome the payroll-tax
  • Real disposable income, or the money left over after taxes adjusted for inflation, increased 0.4 percent after growing 0.3 percent in the prior month.The saving rate increased to 3.2 percent, the highest so far this year, from 3 percent in April.
  • More Americans signed contracts in May to buy previously owned homes than at any time in more than six years, a sign of bigger progress to come in residential real estate,
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Categories: Capital Markets

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