Investing.com -U.S. consumer spending increased as expected in May, though income rose more than estimated, while core inflation eased as forecast, official data showed on Friday.
In a report, the Commerce Department said that personal spending increased 0.1% in May from the prior month. That was in line with consensus but lower than the rise in the prior month.
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 0.4% in May, compared to expectations for a 0.3% rise. That was after rising 0.3% a month earlier, revised down from the initial reading of a 0.4% advance.
Meanwhile, the core PCE price index rose 0.1% in May from a month earlier, in line with forecasts and the same as the gain of 0.1% in April that was revised down from a 0.2% advance.
The core PCE price index rose at an annualized rate of 1.4% in May, matching consensus, but easing from April's 1.5% increase.
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 report, the dollar held onto modest gains. EUR/USD was trading at 1.1412 from around 1.1413 ahead of the release of the data, GBP/USD was at 1.2966 compared to 1.2974 previously, while USD/JPY was at 112.10 from 112.00 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.46, compared to 95.44 ahead of the report.
Meanwhile, U.S. stock futures pointed to a mixed open. The blue-chip Dow futures rose 36 points, or 0.17%, the S&P 500 futures gained 3 points, or 0.13%, while the tech-heavy Nasdaq 100 futures fell 4 points, or 0.06%.
Elsewhere, in the commodities market, gold futures traded at $1,241.17 a troy ounce, compared to $1,243.10 ahead of the data, while crude oil traded at $45.23 a barrel from $45.20 earlier.
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