Growing costs of Americans in May

Spending by Americans rose by 0.3% in May, while revenue grew 1.4%, more widely than expected and the largest increase in a year, official figures showed on Friday.

The rise in spending, which represents about 70% of U.S. economic activity, is located right in line with expectations, while increasing revenue in excess of the 0.3% increase expected by analysts consulted by Reuters.

Spending rose for the first time since February after having remained stable in April, the Commerce Department said.

Real disposable income rose 1.6% in the month, propelled by tax cuts and payments under the incentive plan of the Government. If we exclude the stimulus plan, disposable income grew by 0.2 percent.

"Probably (increased) income was due to payments from the Government, as part of stimulus plan is starting to feel," said Doug Roberts, strategist for Channel Capital Research.

"Although consumption is positive, which is something a rebound shy of the enormous respect that the whole world upturn expected. We'll have to see if this is a stabilization," he added.

The savings were fired at an annual rate of 768.800 million dollars, the highest level since statistics began to be kept in 1959. As a result, the savings rate rose to 6.9%, up from December 1993.

The report also includes a key indicator of inflation. The underlying PCE index, which measures spending on personal consumption, rose by 0.1% in May compared to April and in comparison an accumulated increase of 1.8 percent.