Fresh U.S. economic data showed inflation remained elevated in May while real consumer spending and first-quarter economic growth came in stronger than expected. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose 4.1% year-over-year, while first-quarter GDP was revised up to a 2.1% annualized pace from the previous 1.6% estimate.
- Headline PCE inflation rose 4.1% year-over-year in May, matching estimates, while core PCE increased 3.4%.
- Headline PCE increased 0.4% month-over-month, below the 0.5% consensus forecast.
- Real personal consumption rose 0.3% in May, exceeding expectations of a 0.2% increase.
- First-quarter U.S. GDP was revised higher to a 2.1% annualized growth rate from the prior 1.6% estimate.
- Initial jobless claims fell by 12,000 to 215,000 for the week ended June 20, below expectations of 223,000.
- Continuing jobless claims increased by 21,000 to 1.821 million.
Relevant Companies
- SPDR S&P 500 ETF Trust ($SPY) – Broad U.S. equities may react to stronger growth and persistent inflation data.
- iShares 20+ Year Treasury Bond ETF ($TLT) – Treasury prices may be impacted by shifting expectations for Federal Reserve policy.
- Consumer Discretionary Select Sector SPDR Fund ($XLY) – Stronger-than-expected real consumer spending could influence consumer-focused stocks.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
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