Investing.com - U.S. personal spending increased more-than-expected in March, 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 0.2% in March, above expectations for a modest 0.1% increase. Personal spending rose by 0.7% in February.
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 inched up by 0.2% last month, below expectations for a 0.4% increase, after rising by 1.1% in February.
Meanwhile, the core PCE price index was flat in March, compared to expectations for a 0.1% increase.
The core PCE price index rose at an annualized rate of 1.1% last month, below forecasts for a 1.2% increase, after rising at a rate of 1.3% 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 remained lower against the euro, with EUR/USD adding 0.56% to trade at 1.3105.
Meanwhile, U.S. stock index futures were higher. The Dow Jones Industrial Average futures pointed to a gain of 0.4% at the open, S&P 500 futures indicated a rise of 0.4%, while the Nasdaq 100 futures signaled a gain of 0.45%.
In a report, the Bureau of Economic Analysis said that personal spending rose 0.2% in March, above expectations for a modest 0.1% increase. Personal spending rose by 0.7% in February.
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 inched up by 0.2% last month, below expectations for a 0.4% increase, after rising by 1.1% in February.
Meanwhile, the core PCE price index was flat in March, compared to expectations for a 0.1% increase.
The core PCE price index rose at an annualized rate of 1.1% last month, below forecasts for a 1.2% increase, after rising at a rate of 1.3% 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 remained lower against the euro, with EUR/USD adding 0.56% to trade at 1.3105.
Meanwhile, U.S. stock index futures were higher. The Dow Jones Industrial Average futures pointed to a gain of 0.4% at the open, S&P 500 futures indicated a rise of 0.4%, while the Nasdaq 100 futures signaled a gain of 0.45%.