Consumer spending for May weakest in 6 months

More signs that the economy is slowing; consumer spending tanked in May, the worst showing in six months. Bloomberg: Consumer spending in the U.S. stalled in May as slower job gains and a lack of wage growth prompted Americans to cut back. Purchases were unchanged, the weakest since November, after a 0.1 percent rise the prior month that was smaller than initially reported, Commerce Department figures showed today in Washington. The median estimate of 75 economists surveyed by Bloomberg News called for no change in so-called nominal sales. Merchants from CarMax Inc. (KMX) to Red Robin Gourmet Burgers Inc. (RRGB) are feeling the pinch of restrained household incomes as the jobless rate exceeds 8 percent for 40 straight months. While gasoline prices are less of a burden on Americans, the absence of bigger employment gains will make it tough for spending and the expansion to accelerate. "Consumers are struggling with a lack of income growth, and the consequence is spending is...(Read Full Post)

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