U.S. consumer spending rose for a second straight month in May on increased demand for automobiles and other goods, though there are fears Britain's vote to leave the European Union could hurt confidence and prompt households to cut back on consumption.
The U.S. Commerce Department said on Wednesday consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.4% last month, pointing to an acceleration in economic growth in the second quarter.
Consumer spending in April was revised up to show it advancing 1.1% instead of the previously reported 1% jump. Last month's increase in consumer spending was in line with economists' expectations.
When adjusted for inflation, consumer spending rose 0.3% after gaining 0.8% in April. That could prompt economists to raise their forecasts for second-quarter consumer spending and economic growth.
Consumer spending rose at a 1.5% annual rate in the first quarter, holding down gross domestic product growth to a 1.1% pace.
