Latest news with #BureauOfEconomicAnalysis
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
Personal Income Data Skewed by Social Security ‘Catch-Up' Payments
A drop in personal income in May data released Friday is largely attributable to an anomaly in Social Security payments, according to Troy Ludtka, senior U.S. economist at SMBC Nikko Securities Americas. Personal income decreased 0.4% from the prior month in May, according to estimates released today by the U.S. Bureau of Economic Analysis. While this was a miss compared with many analysts' estimates of a 0.3% increase, the data isn't concerning to Ludtka, he said in a note. Federal policy changes raised benefits for some government retirees, and 'catch-up payments" boosted April's income data. Now, May's data shows a reversal, with Social Security payments falling 7.3% in May from a month earlier.
Globe and Mail
2 days ago
- Business
- Globe and Mail
U.S. consumer spending falls unexpectedly in May
U.S. consumer spending unexpectedly fell in May as the boost from the pre-emptive buying of goods like motor vehicles ahead of tariffs faded, while monthly inflation increases remained moderate. Consumer spending, which accounts for more than two-thirds of economic activity, dropped 0.1 per cent last month after an unrevised 0.2 per cent gain in April, the Commerce Department's Bureau of Economic Analysis said on Friday. Economists polled by Reuters had forecast consumer spending would edge up 0.1 per cent. President Donald Trump's sweeping tariffs, which have led businesses and households to front-run imports and goods purchases to avoid higher prices from duties, have muddled the economic picture. Economists warned it could take time for the tariff-related distortions to wash out of the data. A record goods trade deficit in the first quarter, thanks to a deluge of imports, accounted for much of the 0.5 per cent annualized rate of decline in gross domestic product during that period. U.S. consumer confidence weakens as tariffs create uncertainty over economy, job market Consumer spending also nearly braked last quarter after being propelled by households pulling forward goods purchases. Households also spent less on services last quarter, helping to restrain growth in consumer spending to only a 0.5 per cent pace, the slowest rate since the second quarter of 2020. That data potentially puts spending on a slow growth path in the second quarter. The combination of soft consumer spending and inflation is, however, unlikely to spur the Federal Reserve to resume cutting interest rates in July. Fed Chair Jerome Powell told lawmakers this week that the U.S. central bank needed more time to gauge the impact of tariffs on prices before considering a rate cut. Economists argue that price increases have remained moderate because businesses are still selling inventory accumulated before the tariffs went into effect. They expect inflation will start picking up, beginning with consumer price data for June. U.S. economy shrank 0.5% in the first quarter, worse than earlier estimates had revealed The Personal Consumption Expenditures (PCE) Price Index gained 0.1 per cent in May, matching the rise in April, the BEA said. In the 12 months through May, PCE inflation increased 2.3 per cent after climbing 2.2 per cent in April. Stripping out the volatile food and energy components, the PCE Price Index increased 0.2 per cent last month. That followed a 0.1 per cent rise in the so-called core PCE inflation in April. In the 12 months through April, core inflation advanced 2.7 per cent after rising 2.6 per cent in April. The Fed tracks the PCE price measures for its 2 per cent inflation target. The central bank last week left its benchmark overnight interest rate in the 4.25-4.50 per cent range, where it has been since December.
Zawya
2 days ago
- Business
- Zawya
US consumer spending falls unexpectedly in May
U.S. consumer spending unexpectedly fell in May as the boost from the pre-emptive buying of goods like motor vehicles ahead of tariffs faded, while monthly inflation increases remained moderate. Consumer spending, which accounts for more than two-thirds of economic activity, dropped 0.1% last month after an unrevised 0.2% gain in April, the Commerce Department's Bureau of Economic Analysis said on Friday. Economists polled by Reuters had forecast consumer spending would edge up 0.1%. President Donald Trump's sweeping tariffs, which have led businesses and households to front-run imports and goods purchases to avoid higher prices from duties, have muddled the economic picture. Economists warned it could take time for the tariff-related distortions to wash out of the data. A record goods trade deficit in the first quarter, thanks to a deluge of imports, accounted for much of the 0.5% annualized rate of decline in gross domestic product during that period. Consumer spending also nearly braked last quarter after being propelled by households pulling forward goods purchases. Households also spent less on services last quarter, helping to restrain growth in consumer spending to only a 0.5% pace, the slowest rate since the second quarter of 2020. That data potentially puts spending on a slow growth path in the second quarter. The combination of soft consumer spending and inflation is, however, unlikely to spur the Federal Reserve to resume cutting interest rates in July. Fed Chair Jerome Powell told lawmakers this week that the U.S. central bank needed more time to gauge the impact of tariffs on prices before considering a rate cut. Economists argue that price increases have remained moderate because businesses are still selling inventory accumulated before the tariffs went into effect. They expect inflation will start picking up, beginning with consumer price data for June. The Personal Consumption Expenditures (PCE) Price Index gained 0.1% in May, matching the rise in April, the BEA said. In the 12 months through May, PCE inflation increased 2.3% after climbing 2.2% in April. Stripping out the volatile food and energy components, the PCE Price Index increased 0.2% last month. That followed a 0.1% rise in the so-called core PCE inflation in April. In the 12 months through April, core inflation advanced 2.7% after rising 2.6% in April. The Fed tracks the PCE price measures for its 2% inflation target. The central bank last week left its benchmark overnight interest rate in the 4.25%-4.50% range, where it has been since December. (Reporting by Lucia Mutikani; Editing by Paul Simao)
Bloomberg
2 days ago
- Business
- Bloomberg
MAGA Doesn't Mean Making Profits Great Again
Save To get John Authers' regular newsletter delivered directly to your inbox, sign up here. Corporate America's profits are slipping. Last week, the Bureau of Economic Analysis confirmed that corporate post-tax profits dropped in the first quarter by 3.3% — by far their biggest fall since the pandemic.
Yahoo
2 days ago
- Business
- Yahoo
Gold price today, Friday, June 27, 2025: Gold run slows ahead of PCE inflation report
Gold (GC=F) futures opened at $3,341.30 per ounce Friday, up 0.2% from Thursday's close of $3,333.50. In early trading, the gold futures price dipped below $3,300. Also on Friday, the S&P 500 edged toward a new record high after tensions between Israel and Iran de-escalated and Trump announced a signed trade deal with China. The Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) price index, an inflation measure, on Friday. A positive reading there could extend stock market optimism. Demand for gold often moderates when the stock market is strong, as investors prioritize the capital gains potential in equities over the capital preservation opportunity in gold. The opening price of gold futures on Friday is up 0.2% from Thursday's close of $3,333.50 per ounce. Friday's opening price marks a decline of 0.3% over the past week, compared to the opening price of $3,350 on June 20. In the past month, the gold futures price has risen 0.3% compared to the opening price of $3,332.50 on May 27. In the past year, gold is up 45.5% from the opening price of $2,296.80 on June 27, 2024. Don't forget you can monitor the current price of gold on Yahoo Finance 24 hours a day, seven days a week. Want to learn more about the current top-performing companies in the gold industry? Explore a list of the top-performing companies in the gold industry using the Yahoo Finance Screener. You can create your own screeners with over 150 different screening criteria. The next time you go to Costco (COST), you may want to pick up some gold with that rotisserie chicken. Gold prices have been on a run lately, and what more convenient place can you find to buy a commodity? In fact, the club store sells gold bars, silver coins, and platinum bars — three precious metals that many investors use to diversify their wealth. Learn more: Silver prices hit 13-year high as dollar weakens amid tariff uncertainty: 'The breakout has been brewing' The club store first offered gold bars in 2023, then added silver (SI=F) and platinum over the next year or so. Meanwhile, gold is hanging around its all-time high. Gold, silver, and platinum are all up more than 22% so far in 2025. Intrigued by Costco's precious metals offering? Read more here to learn key considerations for precious metals investing, the details of the Costco selection, and tips for managing your new investment. Whether you're tracking the price of gold since last month or last year, the price-of-gold chart below shows the precious metal's steady upward climb in value. Historically, gold has shown extended up cycles and down cycles. The precious metal was in a growth phase from 2009 to 2011. It then trended down, failing to set a new high for nine years. In those lackluster years for gold, your position will negatively impact your overall investment returns. If that feels problematic, a lower allocation percentage is more appropriate. On the other hand, you may be willing to accept gold's underperforming years so you can benefit more in the good years. In this case, you can target a higher percentage. The precious metal has been in the news lately, and many analysts are bullish on gold. In May, Goldman Sachs Research predicted gold would reach $3,700 a troy ounce by year-end 2025. That would equate to a 40% increase for the year, based on gold's January 2 opening price of $2,633. Rising demand from central banks, along with uncertainty related to changing U.S. tariff policy, are the factors driving the increase. If you are interested in learning more about gold's historical value, Yahoo Finance has been tracking the historical price of gold since 2000.
