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.
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