Consumer spending is weak in May, but so is inflation

MarketWatch/Jeffry Bartash/06-30-17

Americans barely increased spending in May and choose to save more money instead even as decelerating inflation gave them more bang for the buck.

Consumer spending rose 0.1% last month after back-to-back 0.4% gains in April and March, the Commerce Department reported Friday. That matched the Marketwatch forecast of economists.

The meager increase in spending took place against a backdrop of slowing inflation.

PG View: Not typically an environment where the central bank would be tightening policy.

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