Investing.com - U.S. personal spending increased more than expected in March, while personal income figures also topped forecasts, official data showed on Thursday.
In a report, the Commerce Department said that personal spending rose 0.9% in March, above expectations for an increase of 0.6%. Personal spending for February was revised up to a 0.5% 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 0.5%, beating expectations for a 0.4% increase and after gaining 0.4% in February.
Meanwhile, the core PCE price index inched up by a seasonally adjusted 0.2% in March, in line with expectations, after rising 0.1% in February. The core PCE price index rose at an annualized rate of 1.2%, matching forecasts, after rising at a rate of 1.1% in February.
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 modest losses against the euro, with EUR/USD rising 0.07% to trade at 1.3877.
Meanwhile, U.S. stock index futures pointed to a mixed open. The Dow pointed to a loss of 0.04%, S&P 500 indicated a decline of 0.04%, while the Nasdaq 100 signaled an increase of 0.15%.