Consumer spending slowed in May

Consumer spending rose 0.2 percent in May, down from 0.9 percent growth in April, according to the Bureau of Economic Analysis (BEA). Inflation remained steady with prices up 6.3 percent in 2021. “The good news is that we still have savings, but the bad news is that inflation is burning a hole in consumers’ pockets,” said Diane Swonk, chief economist at Grant Thornton. “This is a hard time for consumers, and we’re starting to see inflation eating into some forms of spending.”