Investing.com – The U.S. core personal consumption expenditure index rose slightly less-than-expected in October, official data showed on Wednesday.
In a report, the Bureau of Economic Analysis said its seasonally adjusted core PCE price index rose by 0.1% in October, below expectations for a 0.2% increase and up from a flat reading in September.
The core PCE price index rose at an annualized rate of 1.7% in October, in line with expectations, after rising at a rate of 1.6% in September.
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 less-than-expected in October, increasing by 0.1%, short of expectations for a 0.3% gain. The previous month’s figure was revised up to a 0.7% gain from a 0.6% increase.
Consumer spending, the single biggest source of growth, accounts for as much as two-thirds of U.S. economic activity.
Personal income rose by 0.4% in October, beating expectations for a 0.3% gain, after rising by an unrevised 0.1% in September.
Following the release of the data, the U.S. dollar remained higher against the euro, with EUR/USD dropping 0.8% to trade at 1.3397.
Meanwhile, U.S. equity markets held on to losses following the data. The Dow Jones Industrial Average futures indicated a loss of 0.8%, S&P 500 futures fell 1%, while the Nasdaq 100 futures shed 0.7%.
In a report, the Bureau of Economic Analysis said its seasonally adjusted core PCE price index rose by 0.1% in October, below expectations for a 0.2% increase and up from a flat reading in September.
The core PCE price index rose at an annualized rate of 1.7% in October, in line with expectations, after rising at a rate of 1.6% in September.
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 less-than-expected in October, increasing by 0.1%, short of expectations for a 0.3% gain. The previous month’s figure was revised up to a 0.7% gain from a 0.6% increase.
Consumer spending, the single biggest source of growth, accounts for as much as two-thirds of U.S. economic activity.
Personal income rose by 0.4% in October, beating expectations for a 0.3% gain, after rising by an unrevised 0.1% in September.
Following the release of the data, the U.S. dollar remained higher against the euro, with EUR/USD dropping 0.8% to trade at 1.3397.
Meanwhile, U.S. equity markets held on to losses following the data. The Dow Jones Industrial Average futures indicated a loss of 0.8%, S&P 500 futures fell 1%, while the Nasdaq 100 futures shed 0.7%.