Forex News

US personal spending resumes advance, inflation rises to Fed target


U.S. personal spending rose strongly while the core PCE price index clawed back to the Fed’s target in July, data released on Thursday showed.

Consumer spending surged 0.4 percent last month, resuming advance for a fifth straight month, from a similar increase in June. That matched analysts’ projections.

Personal income for the same month saw a 0.3 percent rise, matching forecasts, following a 0.4 percent advance in June.

Core PCE Price Index rose 0.2 percent on the month, accelerating from 0.1 percent in June, and 2.0 percent from a prior of 1.9 percent.

Another report showed that U.S. initial unemployment claims rose to 213,000 in the week ended August 25 from 210,000 a week before.

As of 12:38 GMT, the dollar trade slightly higher at 94.52, yet it still near the lowest level in four weeks and set for a third straight weekly decline. 

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