U.S. consumer spending fell in May for the first time this year, and prior months were revised lower, suggesting an economy on somewhat weaker footing than previously thought amid rapid inflation and Federal Reserve interest-rate hikes.

Purchases of goods and services, adjusted for changes in prices, decreased 0.4 percent after a downwardly revised 0.3 percent gain a month earlier, U.S. Commerce Department data showed Thursday. Spending on services advanced, while outlays for goods declined.

The personal consumption expenditures (PCE) price index, which the Federal Reserve uses for its inflation target, rose 0.6 percent from a month earlier and was up 6.3 percent since May 2021. The core PCE price index increased 0.3 percent, less than expected. It was up 4.7 percent from a year ago, the smallest gain since November.

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