Thursday data accumulation: GDP, PCE and jobless claims
SPY•U.S. GDP grew at a 3.4% annualized rate last quarter, above analysts’ 3.2% estimate, while September PCE inflation rose 3.6% year over year. Initial jobless claims totaled 194,000, and continuing claims fell to 1.701 million.
1. Growth beats expectations
The U.S. economy grew at a 3.4% annualized rate last quarter, accelerating from 2.2% in the previous quarter and exceeding analysts’ 3.2% estimate. Consumer spending added 2.5 percentage points to growth, while net trade subtracted 3.3 points.
2. Inflation and spending
The personal consumption expenditures price index rose 0.5% month over month and 3.6% year over year in September, compared with 0.3% and 3.4% in August. Core PCE inflation increased 0.3% monthly and 3.1% annually. Personal consumption rose 0.5%, while the savings rate fell to 3.8%, a four-year low.
3. Claims edge lower
Initial jobless claims were 194,000 last week, 5,000 below analysts’ estimates. Continuing claims fell 1.2% to 1.701 million. The four-week average of initial claims continued to move sideways with a slight downward bias.
