The Commerce Department reported on Friday that consumer spending in the U.S. edged up 0.1 percent m-o-m in August, following a revised 0.5 percent m-o-m gain in July (originally a 0.6 percent m-o-m rise). Economists had forecast the reading to show a 0.3 percent m-o-m growth.

Meanwhile, consumer income rose 0.4 percent m-o-m in August, following an unrevised 0.1 percent m-o-m increase in the previous month. Economists had forecast a 0.4 percent m-o-m advance.

The August increase in personal income primarily reflected gains in wages and salaries, nonfarm proprietors’ income, and personal current transfer receipts that were partially offset by a decrease in personal interest income.

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

In the 12 months through August, the core PCE increased 1.8 percent, following a revised 1.7 percent growth in the 12 months through July (originally an advance of 1.6 percent). Economists had forecast a gain of 1.8 percent y-o-y.