U.S. consumer spending increased for the second straight month in June, setting up consumption for a rebound in the third quarter, though the recovery could be limited by a resurgence in Covid-19 cases and the end of expanded unemployment benefits.
The Commerce Department said on Friday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 5.6% last month after a record 8.5% jump in May as more businesses reopened.
Economists polled by Reuters had forecast consumer spending advancing 5.5% in June.
U.S. personal income fell 1.1% in the month, after tumbling 4.2% in May. Economists had expected June personal income to decline by 0.5%.
This is developing news. Please check back for updates.
—CNBC contributed to this report.