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US personal spending rises less than forecast in January

US personal spending rises less than forecasts in January

Personal spending in the United States rose less than forecast in January, yet the personal income reported the strongest increase in nearly a year.

The personal spending soared 0.2 percent last month, following an upwardly revised of 0.4 percent rise. Analysts had called for a 0.3 percent increase.

On the other hand, the personal income jumped 0.6 percent in January, beating projections of 0.3 percent surge, after a downwardly revised of 0.1 percent.

The personal consumption expenditure, the preferred price measure for the Federal Reserve, rose 0.1 percent on the month and 1.7 percent on the year.

The core PCE index, which outstrips food and energy, surged 0.1 percent on the month and 1.6 percent year-on-year.

In Canada, the GDP data indicated that the economy only expanded by 0.1 percent in the last quarter of 2019, reflecting the slowdown in global growth even before the emergence of the coronavirus.

As of 14:06 GMT, the USDCAD pair resumed its advance for a third straight session to 1.3452, which is near the highest level since early June last year. 

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