Consumer Spending Increase at 5-Month High

Washington, DC, May 3, 2010--Real U.S. consumer spending increased 0.5%, the largest amount in five months, the Commerce Department estimated Monday.

However, personal incomes increased 0.3% in the month, with transfer payments such as unemployment benefits accounting for the gain.

The increase in spending also surpassed the pre-recession peak set in November 2007

For the first quarter, real consumer spending rose at a 3.6% annualized rate, the fastest rate in three years, while real disposable incomes were flat.