Week Ending May 31, 2024
GDP Growth Rate QoQ 2nd Est Q1
In the first quarter of 2024, the economy grew at an annualized rate of 1.3%, which is lower than the preliminary estimate of 1.6% and significantly below the 3.4% growth rate recorded in the fourth quarter of 2023. This reduction is primarily attributed to a downward revision in consumer spending. Further, this deceleration in consumer spending was seen primarily in goods consumption, which fell by 1.9% versus the initial estimate of a 0.4% decline. Services consumption revised down to 3.9% as opposed to the previously estimated 4%.
The S&P 500 responded to the this before market open print by posting just over a 31 point loss or 0.6% on the day. This Thursday price action solidified a near term downtrend from recent market highs. Further data on Friday seemed to please market participants as SPX closed the week on a positive note at 5277. source: U.S. Bureau of Economic Analysis
Core PCE Price Index MoM
In April 2024, core PCE price index increased by 0.2% from the previous month. The March print was a 0.3% increase. This month's 0.2% reading marks the slowest growth rate seen so far in 2024. Market participants seemed to enjoy this print as SPX both opened and closed higher to stem the losses incurred in a downtrend week. source: U.S. Bureau of Economic Analysis
Personal Income MoM
In April 2024, U.S. personal income increased by 0.3% from the previous month. The growth rate, which aligns with market predictions, is slower compared to the 0.5% rise observed in the previous month. Employee compensation saw a modest increase of 0.2%, down from a 0.6% gain in March, primarily due to reduced growth in both wages and salaries (0.2% versus 0.6%) and supplements to wages and salaries (0.3% versus 0.4%). source: U.S. Bureau of Economic Analysis
Personal Spending MoM
In April 2024, personal spending in the United States increased by 0.2% from the previous month. This rise, which translated to an additional $39.1 billion in personal consumption expenditure, fell short of market expectations of a 0.3% increase and followed a downwardly revised 0.7% increase in March. The growth was primarily driven by a 0.4% increase in spending on services, particularly in housing and utilities, healthcare, and financial services and insurance. Conversely, spending on goods declined by 0.2%, with significant reductions observed in recreational goods and vehicles. source: U.S. Bureau of Economic Analysis
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