The Commerce Department reports consumer spending rose 0.1% in May after 0.4% gains in April and March. That matched expectations. Inflation fell, with the Personal Consumption Expenditures index faling 0.1% for the second drop in three months. The annual rate of inflation fell to 1.4% in May from 1.7% in April and February’s five-year high of 2.1%. The drop in inflation has boosted real disposable income by 0.6% in May, for biggest gain since December 2012.
August crude is up 0.7% to $45.30 a barrel on the New York Merc. If prices close up today it would be the seventh straight up session. Prices rose after data from the U.S. Energy Information Administration showed that total domestic crude production fell by 100,000 barrels a day to 9.25 million barrels a day for the week ended June 23. Investors are skeptical that oil prices have stabilized because of the potential for stronger output from Libya and Nigeria, members of OPEC who aren’t taking part in its agreement to cut production.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
