The Commerce Department reported that consumer spending in the U.S. rose 0.1 percent m-o-m in June, following an upwardly revised 0.2 percent m-o-m gain in May (originally a 0.1 percent increase). Economists had forecast the reading to show a 0.1 percent m-o-m increase.

Meanwhile, consumer income was unchanged in June, after rising revised 0.3 percent m-o-m in May (originally a 0.4 percent advance). Economists had expected the personal incomes to grow by 0.4 percent in June.

The June flat performance in personal income primarily reflected decreases in personal dividend income and personal interest income that were partially offset by an increase in compensation of employees.

The personal consumption expenditures (PCE) price index, excluding the volatile categories of food and energy, which is the Fed's preferred inflation measure, rose 0.1 percent m-o-m in June after an unrevised 0.1 increase in the prior month. Economists had projected the index would rise 0.1 percent. In the 12 months through June, the core PCE rose 1.5 percent, below the Fed's inflation target of 2 percent.