WASHINGTON (AP) — U.S. consumers spent no more in May than in April after seeing almost no gain in their pay. The lack of growth in consumer spending and wages suggests that a faltering job market is slowing the economy.
The Commerce Department said Friday that consumer spending was unchanged in May. Income growth edged up 0.2 percent, but that was mostly because of gains from investments. Wages, the largest component of income, were essentially flat.
Americans cut back spending on cars and other long-lasting manufactured goods, even though they paid less for gas. Consumers did increase how much they spent on services for the second straight month, one of the few positive signs.
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