US consumer spending increased 0.4% in June

US personal spending increased 0.4% in June from a month earlier, while incomes rose at a slower pace, increasing 0.2% for the month, the Commerce Department said on Tuesday. Market had expected personal spending and income to rise evenly by  0.3% in June.

The personal consumption expenditures price index, the Federal Reserve's preferred inflation measure, increased 0.1% in June from the prior month. From a year earlier, the index was up 0.9%, well below the Fed’s 2% target.