The Commerce Department said Friday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, grew 5.6% last month after a record 8.5% jump in May.
The June gain reflected increased spending on new cars and trucks, clothing, gasoline and recreation as the economy largely reopened last month. Economists polled by Reuters had forecast consumer spending would advance 5.5% in June.
“With June’s increase, inflation-adjusted consumer spending has pulled out of April’s deep hole, though it remains below its pre-pandemic level,” CNBC said.
In April, consumer spending plunged a record 13.6%. Spending in June was boosted by a 6.4% rise in purchases of goods while outlays on services increased 5.2%.