Saving Rate
The saving rate rose slightly in May to 5.4%, a three-month high, but was still near its lowest since 2009. High inflation has prompted Americans to draw down their savings since the end of last year.
The consumer price index, which typically runs hotter than the PCE price index, unexpectedly jumped to a fresh 40-year high in May.
Inflation-adjusted spending on goods dropped 1.6% in May, the biggest drop this year, while services increased 0.3%. Spending on motor vehicles led the decline in goods outlays, according to the Commerce Department.
Services were boosted by housing and utilities, as well as health care.
Wages and salaries increased 0.5% last month. When adjusted for inflation, however, disposable personal income declined 0.1%, the third decrease this year.
Separate figures Thursday showed applications for jobless benefits fell slightly last week, though remained near the highest level since January.
(Adds economists’ comment)
--With assistance from Kristy Scheuble and Olivia Rockeman.
This article was provided by Bloomberg News.