Investing.com - U.S. personal spending increased less than expected in October, while personal income figures also came in below forecasts, official data showed on Wednesday.
In a report, the Commerce Department said that personal spending rose 0.2% last month, below expectations for an increase of 0.4%. Personal spending for September declined 0.2%.
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 0.2% in October, missing forecasts for 0.4% and after gaining 0.2% in September.
Meanwhile, the core PCE price index inched up by a seasonally adjusted 0.2%, above expectations for a 0.1% gain, after rising 0.1% in September. The core PCE price index rose at an annualized rate of 1.6% in October, higher than forecasts for 1.5%, after rising at a rate of 1.5% in the preceding month.
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 1.2491 from around 1.2477 ahead of the release of the data, while GBP/USD was at 1.5782 from 1.5776 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 87.76, compared to 87.89 ahead of the report.
Meanwhile, U.S. stock futures pointed to a mixed open. The Dow futures pointed to a loss of 0.1% at the open, the S&P 500 futures fell 0.1%, while the Nasdaq 100 futures tacked on 0.1%.
Elsewhere, in the commodities market, gold futures traded at $1,198.90 a troy ounce, compared to $1,196.00 ahead of the data, while crude oil traded at $73.89 a barrel from $74.01 earlier.