Odaily News U.S. consumer spending unexpectedly fell in May as the boost from advance purchases ahead of tariffs faded and inflation growth remained mild. Data on Friday showed that consumer spending, which accounts for more than two-thirds of economic activity, fell 0.1% last month, while the market expected a 0.1% increase. Consumer spending was almost stagnant last quarter after the rush of advance shopping disappeared. Spending on services also fell, resulting in a quarterly increase of only 0.5%, the lowest since the second quarter of 2020. The data indicates a weak path for consumption growth in the second quarter. Weak consumption and mild inflation are still not enough to prompt the Federal Reserve to resume interest rate cuts in July. Economists pointed out that the current mild inflation is due to the fact that companies are still selling inventory hoarded before tariffs take effect, and inflation is expected to rise from the June CPI data. (Jinshi)