US consumer spending in May rose for the first time since February, and savings hit a record high as federal stimulus moves boosted incomes. Consumer sentiment also edged higher in June, bolstering the view the economy is close to emerging from recession.

Consumer spending, which accounts for more than 70 per cent of US economic activity, rose 0.3 per cent in May, the Commerce Department said. It revised up April’s figure to unchanged from a small decline. Personal income jumped 1.4 per cent last month, propped by social benefit payments from the economic stimulus. – (Reuters)