The US PCE price index for the second quarter was significantly revised downward to 0.8% on a MoM basis, marking the lowest increase in over a year.
The Federal Reserve's favorite inflation indicator, the core PCE price index excluding food and energy, remained unchanged at an annualized quarterly growth rate of 3.7%, in line with expectations.
US Q2 PCE Downgraded More Than Expected Due to Weak Service Sector Spending
On Wednesday, September 28th, the latest data from the US Department of Commerce showed that the annualized QoQ growth rate of personal consumption expenditure (PCE) in Q2 was revised down to 0.8%, significantly lower than the previous value of 1.7% and below the expected 1.7%.
The data revealed that PCE, which is a major driving force of the US economy, only reached half of the previous value, mainly due to weak spending in the service sector, marking the lowest growth rate in over a year.
The core PCE price index, which is the Federal Reserve's preferred inflation indicator and excludes food and energy prices, remained unchanged at an annualized QoQ growth rate of 3.7%, in line with expectations.
Following the release of the data, the US dollar index fell more than 15 points in the short term, currently trading at 106.24. The yield on the US 10-year Treasury bond dropped 2 basis points to 4.606%.
(Continuously updated)