Consumer spending in US slips by 0.1 per cent

US consumer spending was flat in May, breaking a string of 10 straight months of gains, as households struggled with rising prices and carmakers failed to deliver the models Americans wanted.

When adjusted for inflation, spending slipped 0.1 per cent, the Commerce Department said, falling for a second straight month.

The report, which showed underlying inflation quickening, suggested that consumer spending would offer little support to the economy in the second quarter. In the first three months of the year, it advanced at a modest 2.2 per cent annual rate.