US consumer spending moderated in May, while the Federal Reserve’s preferred inflation metric showed that price growth slowed.
Personal consumption, adjusted for inflation, increased by 0.1 per cent in May, moderating from an 0.8 per cent increase in April and less than the 0.2 per cent expected by economists, the Bureau of Economic Analysis said on Friday.
Consumers spent more on services including outpatient healthcare, international travel and airfare, and less on automobiles and petrol.
The core personal consumption expenditures index, which strips out volatile food and energy items, rose by 0.3 per cent last month, taking the central bank’s preferred inflation gauge to an annualised rate of 4.6 per cent from 4.7 per cent in April.
