Investing.com - U.S. consumer spending rose less than forecast in March, while core PCE prices were in line with expecations, official data showed on Friday.
In a report, the Commerce Department said that personal spending increased by a seasonally adjusted 0.1% last month, worse than expectations for a 0.2% increase, while February’s number was revised up to a gain of 0.2% from a previously reported rise of 0.1%.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
Personal income, meanwhile, rose by a seasonally adjusted 0.4%, above forecasts for a 0.3% gain and after rising 0.1% a month earlier.
Meanwhile, the core PCE price index inched up 0.1% last month, in line with expectations and after rising 0.2% in February.
The core PCE price index rose at an annualized rate of 1.6%, after a 1.7% gain a month earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 93.22, compared to 93.32 ahead of the report.
Meanwhile, U.S. stock futures pointed to a flat to lower open. The blue-chip Dow futures fell 47 points, or 0.26%, the S&P 500 futures lost 6 points, or 0.28%, while the tech-heavy Nasdaq 100 futures shed 19 points, or 0.43%.
The Federal Reserve uses core PCE as a tool to help determine whether to raise or lower interest rates, with the aim of keeping inflation at a rate of 2% or below.