Monthly consumer spending hit five-year high in May

With the economy showing signs of improvement, consumers have been willing to spend more, potentially leading to increased borrowing.

In May, Americans reported spending an average of $90 per day, up from $86 in April and $89 in March, according to Gallup. This was the highest level for spending since October 2008.

Spending dipped slightly in April, so this increase is a good sign for the economy. The U.S. Commerce Department reported a 0.2 percent drop in consumer spending during April, as personal incomes fell.

"Spending growth is going to be soft," Gus Faucher, senior economist at PNC Financial Services Group, told Bloomberg. "Inflation is too low from the Fed's perspective, so they are going to be cautious about tapering bond purchases intended to boost the economy. We will see better growth toward the end of the year."

It appears as though that growth is coming sooner than expected, with May's boost in spending. As consumers continue to feel more confident in the economy short term lending and other forms of credit are likely to be utilized more often.