U.S. government figures Tuesday showed consumer spending rose more than expected in June as households bought a range of goods and services, suggesting consumption will likely remain strong after surging in the second quarter.
The Commerce Department said consumer spending, accounting for more than two-thirds of U.S. economic activity, increased 0.4% in June after a similar gain in May. Economists had forecast consumer spending advancing 0.3%
When adjusted for inflation, consumer spending increased 0.3% after climbing 0.2% in May.
The data was included in last week's second-quarter gross domestic product report, which showed that consumer spending rose at a 4.2% annual rate, the fastest in nearly two years. That jump accounted for almost all of the economy's 1.2% growth pace in Q2
Economists are optimistic that spending will remain solid, underpinned by steadily climbing wages as the labour market tightens, as well as rising house and stock market prices.
