IND - PCE May 2024: Soft Spending Low Inflation Supports Soft Landing Narrative
2024-06-28 11:00:02 ET
Summary
- Personal spending data was soft.
- PCE inflation data was soft.
- The data confirm the US economy is slowing and inflation is decelerating.
The Bureau of Economic Analysis ((BEA)) has just released its estimate for May 2024 US Personal Consumption Expenditures ((PCE)). Also known as “Personal Spending,” PCE directly accounts for over 60% of total US Gross Domestic Product ((GDP)), marking it a crucial indicator for assessing changing rates of expansion, contraction, and momentum in US economic activity.
According to the BEA, Real PCE (adjusted for inflation) expanded by 0.26% — a downside surprise compared to the median forecast of professional economists, which expected -0.04% growth....
PCE May 2024: Soft Spending, Low Inflation Supports Soft Landing Narrative