Investing.com - The U.S. core personal consumption expenditure index rose in line with expectations in September, while personal spending increased more-than-expected, official data showed on Monday.
In a report, the Bureau of Economic Analysis said its seasonally adjusted core PCE price index inched up 0.1% in September, in line with expectations, after rising 0.1% in August.
The core PCE price index rose at an annualized rate of 1.7% last month, in line with forecasts, after rising at a rate of 1.6% in August.
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.
The report showed that personal spending rose 0.8% in September, beating expectations for a 0.6% increase. Personal spending rose by 0.5% in August.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
Personal income rose by 0.4% last month, matching forecasts, after rising by 0.1% in August.
Following the release of the data, the U.S. dollar remained higher against the euro, with EUR/USD shedding 0.37% to trade at 1.2892.
Meanwhile, U.S. stock index futures held on to losses. The Dow Jones Industrial Average futures pointed to a drop of 0.65% at the open, S&P 500 futures indicated a decline of 0.6%, while the Nasdaq 100 futures signaled a drop of 0.85%.
U.S. markets will remain closed on Monday In anticipation of the arrival of Hurricane Sandy.
In a report, the Bureau of Economic Analysis said its seasonally adjusted core PCE price index inched up 0.1% in September, in line with expectations, after rising 0.1% in August.
The core PCE price index rose at an annualized rate of 1.7% last month, in line with forecasts, after rising at a rate of 1.6% in August.
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.
The report showed that personal spending rose 0.8% in September, beating expectations for a 0.6% increase. Personal spending rose by 0.5% in August.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
Personal income rose by 0.4% last month, matching forecasts, after rising by 0.1% in August.
Following the release of the data, the U.S. dollar remained higher against the euro, with EUR/USD shedding 0.37% to trade at 1.2892.
Meanwhile, U.S. stock index futures held on to losses. The Dow Jones Industrial Average futures pointed to a drop of 0.65% at the open, S&P 500 futures indicated a decline of 0.6%, while the Nasdaq 100 futures signaled a drop of 0.85%.
U.S. markets will remain closed on Monday In anticipation of the arrival of Hurricane Sandy.