Investing.com - U.S. personal spending rose broadly in line with market expectations in June, underlining optimism over the health of the economy and supporting the case for a U.S. interest rate hike this year, official data showed on Monday.
In a report, the Commerce Department said that personal spending rose by a seasonally adjusted 0.2% in June, meeting expectations. Personal spending rose 0.7% in May, whose figure was revised from a previously reported gain of 0.9%.
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 by a seasonally adjusted 0.4% in June, above forecasts for a 0.3% increase and after rising 0.4% in May.
Meanwhile, the core PCE price index inched up 0.1% in June, in line with expectations and after rising 0.1% in May. The core PCE price index rose at an annualized rate of 1.3%, above estimates for 1.2% and following a gain of 1.3% in May.
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 1.0946 from around 1.0956 ahead of the release of the data, GBP/USD was at 1.5580 from 1.5586 earlier, while USD/JPY was at 124.25 from 124.19 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 97.66, compared to 97.56 ahead of the report.
Meanwhile, U.S. stock futures pointed to a steady open. The Dow futures pointed to a gain of 0.04%, the S&P 500 futures shed 0.03%, while the Nasdaq 100 futures dipped 0.01%.
Elsewhere, in the commodities market, gold futures traded at $1,089.60 a troy ounce, compared to $1,091.10 ahead of the data, while crude oil traded at $46.14 a barrel from $46.38 earlier.