The Commerce Department reported on Friday that consumer spending in the U.S. surged 8.2 percent m-o-m in May after a revised 12.6 percent m-o-m plunge in April (originally a 13.6 percent m-o-m tumble). That was the largest monthly gain in personal spending on record. Economists had forecast the reading to show a 9.0 percent m-o-m climb.

Meanwhile, consumer income fell 4.2 percent m-o-m in May, following a revised 10.8 percent m-o-m jump in the previous month (originally a 10.5 percent m-o-m advance). That was the largest monthly decrease in personal income since January 2013. Economists had forecast a 6.0 percent m-o-m decline.

The May surge in personal income primarily reflected an increase in government social benefits to persons as payments were made to individuals from federal economic recovery programs in response to the COVID-19 pandemic.

The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, edged up 0.1 percent m-o-m in May, following an unrevised 0.4 percent m-o-m decrease in the prior month. Economists had projected the index would be unchanged m-o-m.

In the 12 months through May, the core PCE increased 1.0 percent, the same pace as in the 12 months through April. Economists had forecast an advance of 0.9 percent y-o-y.