In its first report on the Commerce Department's data on May income and consumption AP told readers that "consumers bolstered their spending in May as their incomes grew solidly, an encouraging sign that high gasoline prices have not killed people’s appetite to buy." Those are not the words I would have used to begin my article. Real consumption spending grew by just 0.1 percent in May and real disposable income fell by 0.1 percent. Maybe we are looking at different reports. [The WSJ article was headlined "Incomes Stagnate Amid Rising Expenses." It noted that real income had fallen for the second consecutive month.]
--Dean Baker
