Consumer Spending Sputtered In May

In a sign of economic wheel-spinning, consumer spending fell by an inflation-adjusted .1% for May, the government announced Monday.

The willingness of consumers to open their pocketbooks was harmed by slow wage growth and high gas prices. Inflation-adjusted after-tax incomes only rose .1%, after falling the same amount last month. And only 54,000 jobs, the lowest in eight months, were created in May.

Hey, if people aren’t getting paid and they don’t have work, they’re not going to be hitting the mall that much. Unless it’s to fill out more job applications.

U.S. Consumer Spending Stalls as Wages Stagnate [NYT]
Personal Income and Outlays, May 2011 [Bureau of Economic Analysis]