Consumer spending jumped last month as stimulus checks boosted household budgets and pushed the saving rate to the highest level since 1995, but another report released on Friday showed confidence took a hit.
Commerce Department data showed U.S. personal spending rose by a greater-than-expected 0.8 percent in May, while a key gauge of inflation remained muted.
Some economists said the stronger spending would double the pace of U.S. growth in the second quarter from what they had been predicting before the data. However, there is a big question mark over whether this will be sustainable.
Fast Money fan Walt R. from Indiana is optimistic. "Our food services business has been phenomenal this year," he writes. "I have been over my yearly goal for over a month. Our company is so busy we can't keep up...."
And that leads to our Fast Money Reader Poll. Do you think consumer spending will hold up over the second half of the year? Answer the poll below and see what people are saying!
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