US consumer spending rebounded in May

US consumer spending rebounded in May, rising by 0.3% and reversing a 0.3% fall in April, official figures show.

Other data published also suggested that the US economy remains on a growth path.

The number of new claimants for unemployment benefits fell last week, while contracts to buy previously-owned homes were at a six-year high in May.

The data helped lift Wall Street, with the Dow Jones up 1% and S&P and Nasdaq indexes up about 0.8%.

Analysts said the figures were not spectacular, but at least showed that the economy was heading in the right direction.

The Labor Department said initial claims for unemployment benefits last week fell 9,000 to a seasonally adjusted 346,000. The four-week moving average for new claims, which irons out week-to-week volatility, fell 2,750 to 345,750.