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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