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U.S personal spending rises 0.1% in February income up 0.4%

 

30 March, 2015

by Investing.com

 

U.S. personal  spending rose for the first time in three months in  February, while personal income topped expectations, official data showed on Monday.

 

In  a  report, the  Commerce  Department  said  that personal spending inched up 0.1% last month, below expectations for a gain of 0.2%. Personal spending dropped 0.2% in January.

 

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 0.4% in February, above forecasts for a 0.3% increase and after gaining 0.4% in January.

 

Meanwhile, the core PCE price index inched up 0.1% in  February, in  line  with  expectations, after  rising 0.1% in January. The core PCE price index rose at an annualized rate of 1.4%, above forecasts for  1.3%, after rising at a rate of 1.3% in January.

 

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 1.0828 from around 1.0842 ahead of the release of the data, GBP/USD was  at 1.4777 from 1.4793 earlier, while USD/JPY was at 119.99 from 119.93 earlier.

 

The US dollar index, which tracks  the  greenback  against  a  basket  of  six  major  rivals, was  at  98.21, compared to 98.10 ahead of the report.

 

Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures indicated a gain of 0.65% at the open, the S&P 500 futures pointed to a rise of 0.5%, whileNasdaq 100 futures advanced 0.65%.

 

Elsewhere, in  the  commodities  market, gold  futures  traded  at  $1,184.80  a troy  ounce, compared  to $1,185.70 ahead of the data, while crude oil traded at $48.75 a barrel from $48.66 earlier.