Consumer Spending in U.S. Rebounds as Incomes Increase

Consumer spending in the U.S. rebounded in May following the largest drop in more than three years, a sign the economy can weather a second-quarter slowdown.

Household purchases rose 0.3 percent after a 0.3 percent decline the prior month that was the biggest since September 2009, according to Commerce Department data issued today in Washington. Other reports showed the housing recovery is gaining momentum and consumers are becoming more confident.