NEW YORK -- The meager gains in May personal income and spending again affirm that the U.S. economic recovery continues at a slow pace, economists said yesterday.
Personal income rose 0.3 percent to a seasonally adjusted annual rate of $5.008 trillion in May, up from April's 0.1 percent increase. It was the fourth consecutive monthly gain, the Commerce Department said. Personal spending rose 0.5 percent to an annual rate of $4.062 trillion, near forecasts, up from last month's revised 0.4 percent gain.
"The modest gains indicate income growth is stagnating in the second quarter, while the gains in spending were largely in autos and durables, represented dips into savings, and confirm the struggling nature of the recovery," economist William Sullivan of Dean Witter Reynolds Inc. said.