News Update: Consumer Spending and Oil Spill Updates

Consumer Spending in U.S. Climbs More Than Forecast

June 28 (Bloomberg) — Consumer spending in the U.S. rose in May more than forecast, a sign households are gaining confidence in the recovery and the job market.

Purchases rose 0.2 percent after little change the prior month, Commerce Department figures showed today. Incomes climbed 0.4 and the savings rate increased to the highest level in eight months.

Mexico Not Expecting Much Damage Yet From BP Oil Spill

MEXICO CITY (Dow Jones)–Mexico is preparing for the arrival of oil floating in from the leaking underwater BP (BP, BP.LN) well in the Gulf, but doesn’t expect much damage unless a hurricane changes the direction of the oil slick or a seasonal shift in water currents brings tar balls to Mexican beaches.

The chief executive of state oil company Petroleos Mexicanos, Juan Jose Suarez Coppel, told legislators that water currents in the Gulf appear to be keeping the oil spill away from Mexico.

“The probability that the oil would move toward Mexican coasts is low, and if that were to happen, we would expect it to be in the form of tar balls or highly emulsified oil trails, which could happen in the next five to seven months,” Suarez said during testimony Thursday.

UPDATE 1-BP says captured 24,450 barrels of oil Sunday

Meanwhile, U.S. Coast Guard officials were watching Tropical Storm Alex, which did not appear to pose an imminent threat to oil-capture efforts at BP’s blown-out Macondo well. [ID:N28210327].

The storm gained strength as it slowly moved away from Mexico’s Yucatan Peninsula, and forecasters said it could become a hurricane on Monday or Tuesday.