PCE Report: Fed's Preferred Inflation Gauge Rises 3.8% In April, Q1 GDP Revised Downward To 1.6%

The Personal Consumption Expenditures (PCE) Index, which is the Federal Reserve’s preferred gauge of inflation, advanced 3.8% in April on an annualized basis.

The Commerce Department data showed that core PCE, which excludes food and energy, rose 3.3% on an annualized basis in April, up 0.2% on a monthly basis.

Both PCE and core PCE were in line with analyst forecasts, according to a Dow Jones estimate as cited by MarketWatch.

PCE is now at its highest level since August 2023, while core PCE is at its highest level since November 2023.

Source: Bureau of Economic Analysis, U.S. Department of Commerce

Q1 GDP Revised Downward

The Bureau of Economic Analysis revised the first quarter (Q1) GDP downward to 1.6%, from its previous estimate of 2%, falling short of Wall Street’s expectations of 2% growth.

This is the second consecutive quarter of GDP growth miss. BEA data showed that the U.S. economy grew at an annualized rate of 0.5% in the fourth quarter (Q4), compared to a Dow Jones forecast of 0.7%.

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