Investing.com - The U.S. core personal consumption expenditure index was flat in July, while personal spending and income rose in line with expectations, official data showed on Thursday.
In a report, the Bureau of Economic Analysis said its seasonally adjusted core PCE price index was flat in July, compared to expectations for a 0.1% increase, after rising by 0.2% in June.
The core PCE price index rose at an annualized rate of 1.3% in July, below expectations for a 1.4% gain, after rising at a rate of 1.5% in the preceding month.
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.
The report showed that personal spending rose 0.4% in July, in line with expectations. Personal spending was flat in June.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
Personal income rose by 0.3% last month, matching forecasts, after rising by a revised 0.3% in June.
Following the release of the data, the U.S. dollar remained lower against the euro, with EUR/USD adding 0.17% to trade at 1.2551.
Meanwhile, U.S. stock index futures held on to modest losses. The Dow Jones Industrial Average futures pointed to a drop of 0.25% at the open, S&P 500 futures indicated a decline of 0.3%, while the Nasdaq 100 futures signaled a drop of 0.35%.
In a report, the Bureau of Economic Analysis said its seasonally adjusted core PCE price index was flat in July, compared to expectations for a 0.1% increase, after rising by 0.2% in June.
The core PCE price index rose at an annualized rate of 1.3% in July, below expectations for a 1.4% gain, after rising at a rate of 1.5% in the preceding month.
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.
The report showed that personal spending rose 0.4% in July, in line with expectations. Personal spending was flat in June.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
Personal income rose by 0.3% last month, matching forecasts, after rising by a revised 0.3% in June.
Following the release of the data, the U.S. dollar remained lower against the euro, with EUR/USD adding 0.17% to trade at 1.2551.
Meanwhile, U.S. stock index futures held on to modest losses. The Dow Jones Industrial Average futures pointed to a drop of 0.25% at the open, S&P 500 futures indicated a decline of 0.3%, while the Nasdaq 100 futures signaled a drop of 0.35%.