Spending soared in May to a record 8.2%, reported by the Commerce Department, accompanied by an increase in personal income which rose 10.5% in April.
Many analysts and economists believe that spending among U.S. consumers following the onset of the stimulus payments may be misleading, with any increase in spending merely temporary, as the benefits of the payments fade. Consumer spending makes up roughly 70% of the U.S. economy, and the potential for a falloff in personal expenditures poses a great deal of uncertainty. Income figures may also be skewed as stimulus payments and generous unemployment benefits have artificially increased incomes for some lower income families.
Source: U.S. Commerce Department