U.S. Q1 GDP Cut to 1.6% as April PCE Inflation Hits 3.8%

11 articles · Updated · Reuters · May 28

U.S. first-quarter growth was revised down to a 1.6% annualized rate from 2.0%, missing expectations for no change and signaling weaker momentum than previously reported.
The downgrade reflected lower estimates for inventory investment and consumer spending, while April PCE inflation rose 3.8% from a year earlier—the fastest since May 2023 but in line with forecasts.
Core PCE edged up to 3.3% year on year from 3.2%, with monthly core inflation slowing to 0.2% from 0.3%, leaving investors split over whether price pressures are easing enough for the Fed.
Markets reacted modestly: the S&P 500 slipped 0.1%, the Nasdaq fell 0.3%, Treasury yields were little changed, and the dollar index dipped 0.1%.

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