Investing.com - U.S. personal spending declined for the first time in 20 months in December, fuelling concerns over the strength of the economy, official data showed on Monday.
In a report, the Commerce Department said that personal spending fell 0.3% in December, worse than expectations for a decline of 0.2%. Personal spending rose 0.5% in November, whose figure was revised down from a previously reported gain of 0.6%.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
The report also showed personal income rose 0.3% in December, above forecasts for 0.2% and after gaining 0.3% in November.
Meanwhile, the core PCE price index was flat in December, compared to expectations for a 0.1% gain, after holding flat in November.
The core PCE price index rose at an annualized rate of 1.3% in December, in line with forecasts, after rising at a rate of 1.4% 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.
EUR/USD was trading at 1.1319 from around 1.1304 ahead of the release of the data, while GBP/USD was at 1.5030 from 1.5026 earlier, while USD/JPY was at 117.58 from 117.68 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 94.99, compared to 95.05 ahead of the report.
Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures indicated a gain of 0.25% at the open, the S&P 500 futures pointed to a rise of 0.25%, while Nasdaq 100 futures advanced 0.15%.
Elsewhere, in the commodities market, gold futures traded at $1,273.10 a troy ounce, compared to $1,272.40 ahead of the data, while crude oil traded at $48.43 a barrel from $48.21 earlier.