WASHINGTON (AP) – American consumers increased their spending by a sharp 8.2% in May, partly erasing record plunges the previous two months.
The increase comes against a backdrop an economy that’s likely shrinking by its steepest pace on record this quarter.
Last month’s rebound in consumer spending followed spending drops of 6.6% in March and 12.6% in April, when the viral pandemic shuttered businesses, forced millions of layoffs and sent the economy into a recession.
Since then, many businesses have reopened, drawing consumers back into shops and restaurants and restoring some lost jobs.
Americans stepped up their spending in May despite a 4.2% decline in personal income, which had soared 10.8% the previous month.
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