The personal consumption expenditures (PCE) price index, the Fed's preferred inflation measure, rose 0.2 percent, after excluding volatile components such as food and energy, following a similar gain in November. Earlier, a private survey showed China's factory activity contracted for a third straight month in February but at a slower pace, helping lift global equities. The benchmark S&P 500 index has risen 11 percent since the beginning of the year, bolstered by progress in trade talks and the Federal Reserve's cautious stance on interest rates.