The U.S. Commerce Department released personal spending and income figures on Monday. Personal spending rose 0.2% in June, in line with expectations, after a 0.7% increase in May. May's figure was revised down from a 0.9% increase.

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

Personal spending was driven by lower demand for automobiles. Spending on auto mobiles dropped 1.3% in June.

The saving rate rose to 4.8% in June from 4.6% in May.

Personal income increased 0.4% in June, in line with expectations, after a 0.4% gain in May. May's figure was revised down from a 0.5% rise.

The personal consumption expenditures (PCE) price index excluding food and energy rose 0.1% in June, in line with forecasts, after a 0.1% gain in May.

On a yearly basis, the PCE price index excluding food and index increased 1.3% in June, after a 1.3% gain in May. May's figure was revised up from a 1.2% rise.

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