Data tornado: PCE, GDP, ADP, et al
SPY•August PCE inflation rose 0.3% month over month and 3.4% year over year, while second-quarter GDP was revised up to 2.2% annualized and ADP reported 90,000 private-sector jobs added in September. Major U.S. stock indexes rose, with the Nasdaq up about 1%.
1. Inflation and spending
The PCE price index rose 0.3% in August and 3.4% from a year earlier, with both readings below economists’ expectations. Core PCE increased 0.2% monthly and 3.3% annually, also cooler than forecast. Personal consumption rose 0.9%, while the personal savings rate fell to 4.1% from 4.6%.
2. GDP revised higher
The Commerce Department’s final estimate showed second-quarter U.S. GDP grew at a 2.2% annualized rate, 0.7 percentage points above its first two estimates. Consumer spending growth was revised to 3.8% from 3.4% and contributed 2.5 percentage points to GDP.
3. Jobs and markets
ADP reported that private employers added 90,000 jobs in September, 20,000 more than economists expected. Major U.S. stock indexes were higher, with the Nasdaq up about 1%; technology led S&P sectors, while real estate lagged.
