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Consumer Spending Was Flat In May

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WASHINGTON (June 29, 2012)--Americans were more cautious about spending in May while their incomes increased only slightly, indicating the faltering job market has stoked fears about the economy's health, the U.S. Commerce Department said Friday.

The Commerce Department said consumer spending showed no gain in May, the weakest figure since spending was unchanged in November.

Income growth edged up 0.2 percent, which matched a modest increase in April.

Consumer spending on autos and other durable goods fell 0.4 percent.

Spending on non-durable goods, such as food and gas, dropped 0.8 percent.

The decrease partly reflected falling gasoline prices.

Economists hope cheaper gas will spur more spending in coming months.


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