US consumer spending shows sizeable pick-up

US consumers boosted their spending in May by the largest amount in more than two years, an encouraging sign for the US economic recovery’s strength.

The Commerce Department reported yesterday that consumer spending rose by a sizeable 1%, a considerable pickup from the 0.2% increase registered in April. The increase in May was the largest since October 2001, when spending rebounded with gusto after being depressed by the September 11 terror attacks.

Meanwhile, Americans’ incomes went up by a strong 0.6% in May for the second straight month.