Shutterstock photo
Markets

U.S. personal spending falls 0.2% in January, income up 0.3%

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - U.S. personal spending declined for the second consecutive month in January, fuelling concerns over the strength of the economy, official data showed on Monday.

In a report, the Commerce Department said that personal spending fell 0.2% in January, worse than expectations for a decline of 0.1%. Personal spending dropped 0.3% in December.

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 0.3% in January, below forecasts for a 0.4% increase and after gaining 0.3% in December.

Meanwhile, the core PCE price index inched up 0.1% in January, in line with expectations, after holding flat in December.

The core PCE price index rose at an annualized rate of 1.3%, above forecasts for 1.2%, after rising at a rate of 1.3% in December.

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 1.1224 from around 1.1231 ahead of the release of the data, while GBP/USD was at 1.5388 from 1.5389 earlier, while USD/JPY was at 119.84 from 119.76 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.22, compared to 95.16 ahead of the report.

Meanwhile, U.S. stock futures pointed to a modestly higher open. The Dow futures indicated a gain of 0.15% at the open, the S&P 500 futures pointed to a rise of 0.1%, while Nasdaq 100 futures advanced 0.15%.

Elsewhere, in the commodities market, gold futures traded at $1,215.30 a troy ounce, compared to $1,217.50 ahead of the data, while crude oil traded at $49.06 a barrel from $49.14 earlier.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com apps for Android and iOS!

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.

Other Topics

ForEx