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Personal Consumption Expenditures

All articles tagged with #personal consumption expenditures

economics1 year ago

"Fed's Preferred Inflation Gauge Shows Minimal Progress Amid Mixed Market Reactions"

The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, showed little progress in April, maintaining the same annual rate of 2.7% as in March. While food prices fell, gas prices rose, and core PCE inflation, excluding food and energy, slowed slightly. Consumer spending and disposable income gains also cooled, indicating a slowdown in economic activity. The Biden administration highlighted progress in reducing inflation, but economists suggest that more favorable reports are needed before the Fed considers cutting interest rates.

via CNN|
#consumer-spending#economic-policy#economics
economics1 year ago

Fed's Preferred Inflation Gauge Shows Minimal Rise, Spending Drops

The Federal Reserve's preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, rose 0.2% in April, aligning with expectations. Core PCE increased 2.8% annually, slightly above estimates. Despite the modest rise, the data suggests inflation remains persistent, leading to cautious market reactions and reduced expectations for imminent interest rate cuts.

via CNBC|
#economic-data#economics#federal-reserve
economics1 year ago

"Fed's Key Inflation Measure Anticipates Minimal Progress"

The Commerce Department's upcoming report on personal consumption expenditures (PCE) prices is expected to show slight progress in reducing inflation, with April's core inflation predicted to slow to 0.2%. This incremental progress is seen as a step towards the Federal Reserve's 2% target, though achieving this goal may be challenging. The Fed prefers the PCE measure over the consumer price index (CPI) for its reflection of consumer behavior. Current market expectations suggest only one interest rate cut this year, likely in November.

via CNBC|
#economic-data#economics#federal-reserve
economy1 year ago

"Inflation Gauge Rises as Stock Market Updates for February 29 Show Elevated Prices"

The Federal Reserve's key inflation measure, the personal consumption expenditures price index, rose 0.4% in January, in line with expectations, and increased 2.8% from a year ago. The report also showed an unexpected jump in personal income and a decrease in spending. Both the headline and core measures of inflation remain ahead of the Fed's 2% annual inflation goal, prompting uncertainty about the future of monetary policy and the possibility of a rate cut. Additionally, a Labor Department report indicated that companies are still reluctant to lay off workers, with initial jobless claims totaling 215,000 for the week ended Feb. 24.

via CNBC|
#economic-data#economy#federal-reserve
business1 year ago

"US Core PCE Inflation Cools in December, Fed Signals Potential Rate Cut"

The Personal Consumption Expenditures price index, a key measure of inflation closely monitored by the Federal Reserve, increased by 2.6 percent in December compared to a year earlier, while the core price index, which excludes food and fuel costs, climbed 2.9 percent, marking the lowest level since March 2021. This indicates that inflation is moderating, allowing policymakers to ease their efforts to slow down the economy and potentially cut interest rates several times this year in order to achieve a "soft landing."

via The New York Times|
#business#economy#federal-reserve
economy2 years ago

"US Consumer Spending Surges Despite Declining Disposable Income"

Real disposable personal income has dropped for the third consecutive month, while spending remains strong. Personal income increased by 0.3 percent in September, but real disposable income decreased by 0.1 percent. Personal consumption expenditures increased by 0.7 percent, with goods increasing by 0.5 percent and services by 0.3 percent. The PCE price index increased by 0.4 percent, while core PCE (excluding food and energy) increased by 0.3 percent. Despite the drop in real disposable income, real personal consumption expenditures continue to rise as consumers dip into savings.

via Mish Talk|
#disposable-personal-income#economy#fiscal-stimulus
economy2 years ago

Inflation Gauge Shows Moderate Rise Despite High Prices

The Federal Reserve's preferred inflation indicator, the personal consumption expenditures (PCE) price index excluding food and energy, rose less than expected in August, increasing by 0.1% compared to the expected 0.2% gain. On a 12-month basis, the annual increase for core PCE was 3.9%, matching forecasts. Consumer spending also slowed, rising 0.4% on a current-dollar basis, down from 0.9% in July. The Fed has been raising interest rates but skipped the September meeting to assess the impact of previous hikes. Several Fed officials have indicated that interest rates are likely to remain elevated for an extended period.

via CNBC|
#consumer-spending#economy#federal-reserve
economy2 years ago

Fed faces challenge as inflation heats up in April.

Inflation rose 0.4% in April and 4.7% from a year ago, according to the personal consumption expenditures price index, a gauge closely followed by the Federal Reserve. Despite the higher inflation rate, consumer spending held up well as personal income increased. The report showed that spending jumped 0.8% for the month, while personal income accelerated 0.4%. The higher inflation rate could lead to interest rates staying higher for longer, potentially impacting consumer spending.

via CNBC|
#consumer-spending#economy#federal-reserve
finance2 years ago

The Deceptive Nature of Inflation's Headline Numbers.

Headline inflation numbers can be misleading, and it's important to dig into more detailed numbers to understand what's really going on. By annualizing the 10-month number of the Consumer Price Index, the current inflation rate is closer to 3.4% rather than the headline 4.9%. Similarly, the Personal Consumption Expenditures numbers, which the Federal Reserve uses to measure inflation, show a nine-month total increase of only 2.3% if you start counting in July, which annualizes to just over 3%. While inflation is still higher than before, these numbers suggest that it has fallen sharply in the past 9-10 months.

via Yahoo Finance|
#annualized-numbers#consumer-price-index#federal-reserve
economy2 years ago

US Inflation Cools in March, but Stubborn Price Increases Persist

The Personal Consumption Expenditures index climbed by 4.2 percent in the year through March, down notably from 5.1 percent in the year through February. But after stripping out food and fuel prices, a closely watched “core” index held nearly steady last month. The data provide further evidence that inflation is moderating, but that the process remains bumpy and could take a long time to fully play out. The Fed officials are widely expected to raise rates by a quarter percentage point to just above 5 percent.

via The New York Times|
#banking-sector#economy#federal-reserve
business2 years ago

Fed's preferred inflation measure cools while stock market rallies.

The Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures price index, rose 4.2% for the 12 months ended in March, down from an upwardly revised 5.1% in February. The closely watched core PCE index, which excludes food and energy, also trended down slightly. Consumer spending was flat in March, falling short of expectations.

via CNN|
#business#consumer-spending#core-pce-index
business2 years ago

US Inflation Remains Steady Despite Economic Slowdown

The personal consumption expenditures price index excluding food and energy increased 0.3% in March, in line with expectations, while the employment cost index increased 1.2% for the first quarter, higher than the estimate. Despite a year's worth of interest rate increases, inflation rose again in March, with the core PCE increasing 4.6% annually, slightly higher than expected.

via CNBC|
#business#employment-cost-index#federal-reserve
business2 years ago

"February Inflation Data Impacts Stock Market: S&P 500 and Dow Jones Rise"

The Federal Reserve's key inflation rate showed price pressures were tamer than expected in February, as consumer spending softened. The overall personal consumption expenditures, or PCE, price index rose 0.3% on the month and 5% from a year ago, easing from a downwardly revised 5.3% in January. The S&P 500 opened about 0.3% higher in early Friday stock market action.

via Investor's Business Daily|
#business#core-pce-inflation#federal-reserve
business2 years ago

US Inflation Cools in February, Fed's Preferred Gauge Slows

The Personal Consumption Expenditures price index, the Federal Reserve's preferred inflation gauge, rose 5% for the 12 months ended in February, lower than January's downwardly revised 5.3% gain, according to the Commerce Department. The core PCE index, which excludes the more volatile food and energy categories, showed prices increased 0.3% on a month-on-month basis and rose 4.6% on an annual basis. Consumer spending rose 0.2% in February, representing a sharp cooldown from January's hot reading of 1.8%.

via CNN|
#business#consumer-spending#federal-reserve