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Investing.com - U.S. consumer spending rose in line with market expectations in November, while personal income topped expectations, official data showed on Wednesday.
In a report, the Commerce Department said that personal spending inched up by a seasonally adjusted 0.3% last month, meeting forecasts. Personal spending for October was revised down to a flat reading from a previously reported gain of 0.1%.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
Personal income, meanwhile, rose by a seasonally adjusted 0.3% in November, above forecasts for a 0.2% gain and after rising 0.4% a month earlier.
Meanwhile, the core PCE price index inched up 0.1% last month, meeting expectations and after holding flat in October. The core PCE price index rose at an annualized rate of 1.3%, below estimates for 1.4% and unchanged from a month earlier.
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.
EUR/USD was trading at 1.0913 from around 1.0917 ahead of the release of the data, GBP/USD was at 1.4892 from 1.4889 earlier, while USD/JPY was at 120.88 from 120.90 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.38, compared to 98.39 ahead of the report.
Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures pointed to a gain of 91 points, or 0.52%, the S&P 500 futures indicated a rise 7 points, or 0.33%, while the Nasdaq 100 futures increased 16 points, or 0.35%.
Elsewhere, in the commodities market, gold futures traded at $1,071.40 a troy ounce, compared to $1,070.70 ahead of the data, while crude oil traded at $36.83 a barrel from $36.81 earlier.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
