Consumer Spending Higher-Than-Expected In May

US consumer spending rose a better-than-expected 0.8% year-on-year in May, as tax rebates helped fuel the biggest rise since November 2007.

 Figures from the Commerce Department
said the rebates helped push incomes up by 1.9%, which in turn
prompted consumers to buy furniture, clothes and electronics after
filling their cars with fuel. Adjusted for inflation, spending rose
0.4% year-on-year, the biggest gain since December 2006.
The
figures indicate that the fiscal stimulus will boost economic growth
this quarter, after growth of just 1% in the January-March period.
However, the gains are not widely expected to last, as rising
unemployment and higher fuel prices hurt consumer confidence.