The Commerce Department reported on Friday that consumer spending in the U.S. rose 0.4 percent m-o-m in May, following a revised 0.6 percent m-o-m gain in April (originally a 0.3 percent m-o-m increase). Economists had forecast the reading to show a 0.4 percent m-o-m growth.

Meanwhile, consumer income climbed 0.5 percent m-o-m in May, the same pace as in the previous month. Economists had forecast a 0.3 percent m-o-m advance.

The May increase in personal income primarily reflected increases in personal interest income, wages and salaries, and government social benefits to persons, the report said.

The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, rose 0.2 percent m-o-m in May, following a 0.2 percent m-o-m advance in the prior month. Economists had projected the index would increase 0.2 percent m-o-m.

In the 12 months through May, the core PCE increased 1.6 percent, the same pace as in the 12 months through April. Economists had forecast a gain of 1.6 percent y-o-y.