U.S. inflation slowed in April and consumer spending was strong.
The U.S. PCE price index in April was at an annual rate of 6.3%, in line with expectations, and the previous value was 6.6%. The US April PCE price index was 0.2% month-on-month, in line with expectations, and the previous value was 0.9%. The monthly rate of personal consumption expenditures in the United States was 0.9% in April, compared with the expected 0.8% and the previous value of 1.4%. The Fed’s favorite inflation gauge, the core PCE price index, was at an annualized rate of 4.9% in April, in line with expectations, and 5.2% in the previous month, falling for the second straight month. The US core PCE price index in April was 0.3% month-on-month, in line with expectations, and the previous value was 0.3%.
Although the PCE price index level remains high, this has eased inflationary pressures compared to the previous month. That figure does not include volatility in food and energy prices, which are the main factors driving inflation to its highest level in 40 years.
After the data was released, U.S. stock index futures rose rapidly, Nasdaq futures rose more than 1%, S&P 500 futures rose 0.6%, and Dow futures rose 0.3%. The yield on the 10-year U.S. Treasury note rose to 2.743%. The short-term decline in spot gold expanded to $7, and is now reported at $1,852.46 an ounce.
Meanwhile, U.S. consumer spending rose more than expected in April and annual inflation appeared to have peaked, which could help support growth in the second quarter amid rising recession fears.
The monthly rate of personal consumption expenditures in the United States was 0.9% in April, compared with the expected 0.8% and the previous value of 1.4%. The U.S. real personal consumption expenditure in April was 0.7% month-on-month, in line with expectations, and the previous value was 0.5%.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.9% last month. The data for March was revised up to 1.4%, from 1.1% previously reported; this shows that consumer demand is strong.
Companies scrambled to fill a record 11.5 million job openings at the end of March. The monthly rate of personal income in the United States in April was 0.4%, expected to be 0.5%, and the previous value of 0.5%. As a result, spending was underpinned by strong wage increases.
The Fed’s hawkish monetary policy stance as it struggles to curb high inflation and plans to lower it to its 2% target has sparked fears of a U.S. recession, sparking a sell-off in stocks, U.S. Treasury yields and the U.S. dollar The exchange rate rose sharply. The Russian-Ukrainian war, among other things, has also heightened concerns about a U.S. economic downturn, as have supply chain issues.
However, data now shows that the U.S. economy remains strong. Moreover, the US wholesale inventory data also showed a good economic outlook. The initial monthly rate of wholesale inventories in the United States in April was 2.1%, expected to be 2%, and the previous value of 2.3%. U.S. wholesale inventory data reflects changes in the total value of items in wholesalers’ inventories, which are temporarily idle resources to meet future needs; wholesalers act as intermediaries between manufacturers/importers and retailers, and their inventory can be used as an economic One of the leading indicators, the rapid growth of wholesale inventories indicates that wholesalers are optimistic about the economic outlook.
Still, U.S. household consumption is at risk of a slowdown, as gasoline prices are now back at record highs and grocery bills weigh more heavily on budgets.
edit/irisz
This article is reprinted from: https://news.futunn.com/post/15951652?src=3&report_type=market&report_id=206813&futusource=news_headline_list
This site is for inclusion only, and the copyright belongs to the original author.