U.S. personal spending jumps 0.9% in May, the biggest increase since August 2009

The U.S. Commerce Department released personal spending and income figures on Thursday. Personal spending jumped 0.9% in May, exceeding expectations for 0.7% gain, after a 0.1% increase in April. It was the biggest increase since August 2009.

April's figure was revised up from a flat reading.

Consumer spending makes more than two-thirds of U.S. economic activity.

Personal spending was partly driven by a rise in spending on automobiles, which soared 2.2% in May.

The saving rate declined to 5.1% from 5.4% in April.

Personal income increased 0.5% in May, in line with expectations, after a 0.5% rise in April. April's figure was revised up from a 0.4% gain.

The personal consumption expenditures (PCE) price index excluding food and energy rose 0.1% in May, in line with forecasts, after a 0.1% gain in April.

On a yearly basis, the PCE price index excluding food and index increased 1.2% in May, beating expectations for a 0.8% gain, after a 1.3% rise in April. It was the smallest rise since February 2014.

April's figure was revised up from a 1.2% increase.

The PCE index is below the Fed's 2% inflation target. The PCE index is the Fed's preferred measure of inflation.