Nook Color surpasses Kindle for the first time in Consumer Report rankings (Appolicious)

Even without all the bells and whistles of the Nook Color, Barnes & Noble (BKS) managed to scrape by Amazon (AMZN) in Consumer Reports’ rankings of e-readers for the first time with its all new Nook Simple Touch Reader. The bookstore’s latest black-and-white e-reader, which is the first e-ink-based reader to feature the Google (GOOG) Android 2.1 operating system, scored just one point higher than the most recent edition of the Kindle and a few points higher than other models.

Updating from previous versions that operated on Android 1.5, the new reader features additional flexibility in “rooting” or adding alternative apps and games for advanced users. The newest version of the Android operating system for the Book offers the support required to run modern day games and applications, even Angry Birds, although it has frame-rate issues, according to the blog Good E-Reader.

The newest B&N device also offers a web browser, which is only available through the search button. This feature was quietly introduced, and is accessible if you type the proper website address in the search field. The device also offers a touchscreen that the Kindle does not, as well as smoother page turns and minimized flashing, according to B&N.

Consumer Reports said the Nook Simple, which is also being called “The All-New Nook,” matches or is modestly better than the Kindle in nearly every aspect of performance, including battery life. Instead of attempting to be a tablet as it did with the original Nook and the Nook Color, B&N brought the new Nook Simple back to the roots of the e-reader, with a focus on reading with fewer extra features. The publication noted that Kindle has the potential to reclaim its top spot with upcoming firmware updates.

Although the Nook Color has given B&N a chance to compete in the tablet space, it took going back to the black-and-white basics of e-reader technology, with a few additional features thanks to an updated Android operating system, for the bookstore to edge out Amazon’s pioneer product.

Consumer spending flat in May as autos sales slump (Reuters)

WASHINGTON (Reuters) – Consumer spending was unchanged in May for the first time in almost a year as motor vehicle sales tumbled, according to a government report on Monday that also showed a build-up in underlying inflation pressures.

When adjusted for inflation, spending slipped 0.1 percent in May, the Commerce Department said, falling for a second straight month.

The flat reading in consumer spending came after 10 straight months of gains and suggested that consumer spending, which has been hampered by high gasoline prices, in the second quarter will be much slower than the 2.2 percent annual rate recorded in the first three months of the year.

Consumer spending, which accounts for 70 percent of U.S. economic activity, rose 0.3 percent in April and economists had expected a gain of 0.1 percent last month.

""We will be trimming the consumption number for the second quarter and GDP for the second quarter. That's worth a couple of tenths of a point," said Stephen Stanley, chief economist at Pierpont Securities in Stamford, Connecticut.

While the report fits in with other data illustrating the loss of momentum in the economy, falling gasoline prices should lift spending and therefore growth in the third quarter.

Gasoline prices have dropped significantly from their peak of $4.02 a gallon in early May.

"It was a little bit of a blow to consumers from the higher energy prices and the supply chain issues. We'll see a nice rebound in third-quarter GDP on the back of full production in the auto industry," said Stanley.

U.S. Treasury debt prices pared some losses on the data, while stock index futures were little changed.

Spending on durable goods fell 1.5 percent after being flat in April.

Spending last month was probably held back by a sharp drop in motor vehicle purchases as disruptions to auto production due to a shortage of parts in the aftermath of Japan's March earthquake and tsunami left some models out of stock.

Motor vehicle sales in May set their lowest rate since September.

But there are signs disruptions to auto production are easing. The Chicago Federal Reserve's Midwest manufacturing index rose to 84.0 in May from 83.6 in April, partly reflecting a bounce back in autos.

Despite retreating gasoline prices, underlying inflation pressures continue to percolate.

The personal consumption expenditures price (PCE) index rose 0.2 percent after rising 0.3 percent in April. Compared to May last year, the index was up 2.5 percent, the largest rise since January 2010, after increasing 2.2 percent in April.

The core PCE index -- excluding food and energy -- increased 0.3 percent, the largest increase since October 2009, after rising 0.2 percent the prior month.

The core index, which is closely watched by Federal Reserve officials, increased 1.2 percent in the 12 months through May, the biggest increase since August. The index rose 1.1 percent year-on-year in April and the Fed would like to see it close to 2 percent.

Incomes rose 0.3 percent last month, slightly below expectations for a 0.4 percent increase. Incomes gained 0.3 percent in April.

Disposable incomes adjusted for inflation edged up 0.1 percent, while savings rose to an annual rate of $591.1 billion from $568.0 billion in April.

(Additional reporting by Richard Leong in New York; Editing by Andrea Ricci)