Consumer Spending Flat in May

Washington, DC, June 27, 2011 -- Consumer spending in May was at its weakest pace in 20 months, according to the Commerce Department.

Consumer spending was unchanged in May, the government said Monday. That was the worst result since September 2009. And when adjusted for inflation, spending actually dropped 0.1%.

April's consumer spending figures were revised to show a similar decline when adjusting for inflation. It marked the first decline in inflation-adjusted spending since January 2010.

Incomes rose 0.3% for the second straight month. But adjusted for inflation, after-tax incomes increased only 0.1% in May, after falling by the same amount in the previous month.