Spending Shift

Real consumer spending in May fell 0.4% M-o-M. Real durable goods spending declined 4.3%, while real spending on non-durables eased 0.5%. Conversely, real spending on services, which is 60% of overall spending, rose 0.4%. Households with incomes greater than $200,000 led the charge, boosting restaurant spending by 16%. Households with incomes between $31,000-$60,000 boosted such spending by 5%. Suggesting more growth is ahead, savings rates remain 50% above pre-pandemic levels.