NEWS SUMMARY: US consumer spending flat in May

SPENDING FLAT: U.S. consumers spent no more in May than in April after seeing almost no gain in their pay. Americans cut back on spending on autos and other long-lasting manufactured goods.

WEAK INCOME: Income growth edged up 0.2 percent in May but the increase came from investment income. Wages and salaries, the biggest income component, were flat. That is a worrisome sign for future spending gains.

OUTLOOK: Consumer spending drives 70 percent of economic activity. The May report raises concerns that overall economic growth in the April-June period could be even weaker than the 1.9 percent increase in the first quarter.