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Latest GDP and Inflation Data Suggest Moderation in US Economy
174 sats \ 6 comments \ @TomK 30 Oct econ
The US economy showed signs of slowing in the third quarter, with key indicators coming in below expectations. Gross domestic product (GDP) grew at an annualized rate of 2.8%, missing the 2.9% forecast and marking a decline from the prior quarter's 3.0% expansion.
Meanwhile, the personal consumption expenditures (PCE) index, the Federal Reserve's preferred inflation gauge, rose 1.5% - well below the 2.7% estimate and the previous quarter's 2.5% increase. Core PCE, which excludes volatile food and energy prices, increased 2.2%, slightly higher than the 2.1% forecast but down from 2.8% in the prior period.
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47 sats \ 4 replies \ @Cje95 30 Oct
Take what I am saying with a grain of salt cause I have CNBC on in the background so I might have missed some of the key points but it was my understanding that the numbers were almost an equal split of good and bad.
The PCE rose 3.7% Q/Q and that was higher than expected which again from my understanding is one of the reasons that rates today did not fall when the news came out. One of the people talking was confused with the number breakdowns from this first reading and the jobs growth data just because it seemed to be two different stories.
What are your thoughts?
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0 sats \ 3 replies \ @TomK OP 30 Oct
Slowly but surely a deflationary surprise is finding its way through the economy....
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0 sats \ 2 replies \ @Cje95 30 Oct
With the Treasury announcement of the 125 billion in offerings raising only 8.6 billion do you see that as an issue or something that possibly keeps the economy treading water?
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10 sats \ 1 reply \ @TomK OP 30 Oct
That will be resolved by the still very deep and liquid global demand for USTs. At a point there will be spending cuts by the new gov and Fed intervention (mild QE)
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0 sats \ 0 replies \ @Cje95 30 Oct
Awesome thank you for the insights!
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0 sats \ 0 replies \ @Satosora 30 Oct
Even in times of economic downturn, some people still cant save money and cut out luxury.
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