The U.S. Commerce Department released personal spending and income figures on Wednesday. Personal spending increased 0.2% in October, missing expectations for a 0.4% gain, after the flat reading in September. September's figure was revised up from a 0.2% decrease.

Consumer spending makes more than two-thirds of U.S. economic activity.

Falling gasoline prices and a strengthening labour market were supporting consumer spending in the U.S.

Personal income climbed 0.2% in October, missing expectations for 0.4% increase, after a 0.2% rise in September.

The personal consumption expenditures (PCE) price index excluding food and energy increased 0.2% in October, beating forecasts of a 0.1 rise, after a 0.1% gain in September.

On a yearly basis, the PCE price index excluding food and index rose 1.6% in October, after a 1.5% increase in September. That was the largest increase since December 2012.

The PCE index are below the Fed's 2% inflation target. The PCE index is the Fed's preferred measure of inflation.