Investing.com - U.S. personal spending increased in line with expectations in May, while personal income figures came in above forecasts, official data showed on Thursday.
In a report, the Bureau of Economic Analysis said that personal spending rose 0.3% in May, in line with expectations.
Personal spending for April was revised down to a 0.3% decline from a previously reported drop of 0.2%.
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 increased 0.5% last month, above expectations for a 0.2% increase, after rising by 0.1% in April.
Meanwhile, the core PCE price index inched up by a seasonally adjusted 0.1% in May, in line with expectations, after posting a flat reading in April.
The core PCE price index rose at an annualized rate of 1.1% last month, matching forecasts, after rising at a rate of 1.1% in April.
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 1.3035.
Meanwhile, U.S. stock future indices pointed to a higher open. The Dow Jones Industrial Average futures pointed to gain of 0.5%, S&P 500 futures indicated a rise of 0.6%, while the Nasdaq 100 futures signaled an increase of 0.6%.
In a report, the Bureau of Economic Analysis said that personal spending rose 0.3% in May, in line with expectations.
Personal spending for April was revised down to a 0.3% decline from a previously reported drop of 0.2%.
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 increased 0.5% last month, above expectations for a 0.2% increase, after rising by 0.1% in April.
Meanwhile, the core PCE price index inched up by a seasonally adjusted 0.1% in May, in line with expectations, after posting a flat reading in April.
The core PCE price index rose at an annualized rate of 1.1% last month, matching forecasts, after rising at a rate of 1.1% in April.
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 1.3035.
Meanwhile, U.S. stock future indices pointed to a higher open. The Dow Jones Industrial Average futures pointed to gain of 0.5%, S&P 500 futures indicated a rise of 0.6%, while the Nasdaq 100 futures signaled an increase of 0.6%.