U.S. consumer spending hits highest growth levels since 2009
U.S. consumer spending surged at a faster rate in May than it has in nearly six years, indicating promising economic growth ahead. A new report by the Commerce Department released Thursday reveals that Americans' spending increased 0.9 percent since April, which is the biggest month-to-month increase that's been seen since August 2009. In April, spending only jumped by 0.1 percent, which initially prompted the government projection of no economic growth.
This boost in personal spending — a category that includes everything from food to cars to medical care — coincides with a boost in Americans' paychecks. In the May report, the Commerce Department also revealed that personal income rose by 0.5 percent last month. These personal income gains are likely the motivation behind Americans' decision to worry just a little less about savings and instead do some spending. That's good news for the economy, and for growth numbers in the future.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
-
Today's political cartoons - October 23, 2024
Cartoons Wednesday's cartoons - loving thy neighbour, an HR matter, and more
By The Week US Published
-
Giuliani must hand assets to women he defamed
Speed Read The former New York City mayor must turn over his apartment and other possessions
By Peter Weber, The Week US Published
-
Abercrombie ex-CEO charged with sex crimes
Speed Read Mike Jeffries ran the brand during its heyday from 1992 to 2014
By Rafi Schwartz, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published