US personal consumption spending growth slows in February

The Personal Consumption Expenditures (PCE) index, which the US Federal Reserve (Fed) considers an important indicator of inflation, rose 0.3 percent in February compared to the previous month.

The PCE rose 0.6 percent in January. Economists had expected a monthly increase of 0.3 percent.

On an annual basis, a 5% increase in PCE was observed. The expectation for this data was 5.1 percent. Data for January was revised to 5.3 percent from 5.4 percent.

Core PCE rose 0.3 percent per month over the same period. The expectation was announced as 0.4 percent. On an annual basis, the core deflator rose 4.6 percent. Economists polled by Bloomberg had expected a 4.6 percent rise.

THE MARKETS REACTED POSITIVELY

Futures contracts on major US stock indices rose to gains after data showed growth in US personal consumption spending slowed. As of 3:52 PM, Dow Jones Index futures contracts were up 0.34%, while S&P 500 Index futures were up 0.24%. Nasdaq 100 Index futures rose 0.11%.