The Commerce Department reported on Friday that consumer spending in the U.S. rose 0.2 percent m-o-m in January 2020, following an upwardly revised 0.4 percent m-o-m gain in December 2019 (originally a 0.3 percent m-o-m increase). Economists had forecast the reading to show a 0.3 percent m-o-m growth.

Meanwhile, consumer income climbed 0.6 percent m-o-m in January, following a revised 0.1 percent m-o-m advance in the previous month (originally a 0.2 percent m-o-m gain). That was the largest monthly climb in consumer income since February 2019. Economists had forecast a 0.3 percent m-o-m increase.

The January advance in personal income primarily reflected gains in compensation of employees and social security benefit payments (related to the annual cost of living adjustments), and other government social benefits to the person.

The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, edged up 0.1 percent m-o-m in January, following a 0.2 percent m-o-m advance in the prior month. Economists had projected the index would rise 0.2 percent m-o-m.

In the 12 months through January, the core PCE increased 1.6 percent, following a downwardly revised 1.5 percent growth in the 12 months through December (originally a 1.6 percent increase). Economists had forecast a gain of 1.7 percent y-o-y.