The Commerce Department reported on Tuesday that consumer spending in the U.S. rose 0.3 percent m-o-m in June, following a revised 0.5 percent m-o-m gain in May (originally a 0.4 percent m-o-m increase). Economists had forecast the reading to show a 0.3 percent m-o-m growth.

Meanwhile, consumer income climbed 0.4 percent m-o-m in June, the same pace as in the previous month (revised from +0.5 percent m-o-m). Economists had forecast a 0.4 percent m-o-m advance.

The June increase in personal income primarily reflected increases in wages and salaries, government social benefits to persons, and supplements to wages and salaries.

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 June, following a revised 0.1 percent m-o-m advance in the prior month (originally a 0.2 percent m-o-m gain). Economists had projected the index would increase 0.2 percent m-o-m.

In the 12 months through June, the core PCE increased 1.4 percent, the same pace as in the 12 months through May (revised from +1.5 percent m-o-m). Economists had forecast a gain of 1.7 percent y-o-y.