Investing.com - U.S. personal spending rose for the first time in three months in February, while personal income topped expectations, official data showed on Monday.
In a report, the Commerce Department said that personal spending inched up 0.1% last month, below expectations for a gain of 0.2%. Personal spending dropped 0.2% in January.
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 0.4% in February, above forecasts for a 0.3% increase and after gaining 0.4% in January.
Meanwhile, the core PCE price index inched up 0.1% in February, in line with expectations, after rising 0.1% in January. The core PCE price index rose at an annualized rate of 1.4%, above forecasts for 1.3%, after rising at a rate of 1.3% in January.
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 1.0828 from around 1.0842 ahead of the release of the data, GBP/USD was at 1.4777 from 1.4793 earlier, while USD/JPY was at 119.99 from 119.93 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.21, compared to 98.10 ahead of the report.
Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures indicated a gain of 0.65% at the open, the S&P 500 futures pointed to a rise of 0.5%, while Nasdaq 100 futures advanced 0.65%.
Elsewhere, in the commodities market, gold futures traded at $1,184.80 a troy ounce, compared to $1,185.70 ahead of the data, while crude oil traded at $48.75 a barrel from $48.66 earlier.