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US tax rebates boosted consumer spending in May
AFP, June, 2008
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WASHINGTON (AFP) — US consumer spending rose 0.8 percent in May, as Americans spent the proceeds of tax rebate checks, while incomes swelled 1.9 percent, a government report showed Friday.
The jump in consumer spending last month was significantly boosted by the one-off rebate checks, part of a giant 168-billion-dollar economic stimulus program, the Commerce Department report said.
The gains in spending and income were both stronger than most economists had expected.
The monthly snapshot is followed closely by the financial markets because consumer spending is the main driver of US economic activity which has been sapped by a lengthy housing downturn and a credit squeeze.
"The federal government issued rebate payments of 48.1 billion dollars in May. As a result, disposable personal income increased substantially," the ...
