Investing.com - U.S. personal spending increased in line with expectations in November, while personal income figures came in below forecasts, official data showed on Monday.
In a report, the Bureau of Economic Analysis said that personal spending rose 0.5% last month, matching expectations. Personal spending for October was revised up to a 0.4% gain from a previously reported increase of 0.3%.
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 0.2% in November, missing expectations for a 0.5% increase, after falling by 0.1% in October.
Meanwhile, the core PCE price index inched up by a seasonally adjusted 0.1% in November, in line with expectations, after rising 0.1% in October. The core PCE price index rose at an annualized rate of 1.1% last month, below forecasts for a 1.1% increase, after rising at a rate of 1.1% in October.
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.
Following the release of the data, the U.S. dollar held on to losses against the euro, with EUR/USD adding 0.17% to trade at 1.3695.
Meanwhile, U.S. stock future indices pointed to a higher open. The Dow Jones Industrial Average futures pointed to gain of 0.35%, S&P 500 futures indicated a rise of 0.5%, while the Nasdaq 100 futures signaled an increase of 0.8%.
In a report, the Bureau of Economic Analysis said that personal spending rose 0.5% last month, matching expectations. Personal spending for October was revised up to a 0.4% gain from a previously reported increase of 0.3%.
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 0.2% in November, missing expectations for a 0.5% increase, after falling by 0.1% in October.
Meanwhile, the core PCE price index inched up by a seasonally adjusted 0.1% in November, in line with expectations, after rising 0.1% in October. The core PCE price index rose at an annualized rate of 1.1% last month, below forecasts for a 1.1% increase, after rising at a rate of 1.1% in October.
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.
Following the release of the data, the U.S. dollar held on to losses against the euro, with EUR/USD adding 0.17% to trade at 1.3695.
Meanwhile, U.S. stock future indices pointed to a higher open. The Dow Jones Industrial Average futures pointed to gain of 0.35%, S&P 500 futures indicated a rise of 0.5%, while the Nasdaq 100 futures signaled an increase of 0.8%.