The Dow Jones Industrial Average fell more than 100 points after the US Personal Consumption Expenditure (PCE) price index was released today.
As of 9:42 p.m. Thai time, the Dow Jones Industrial Average dropped 169.25 points or 0.51% to 32,858.24 points.
Analysts stated that Although the US released the PCE index numbers in line with analyst expectations. But that number remains high. And indicates that inflation is still higher than the Federal Reserve’s (Fed) target of 2%, causing the Fed to continue to raise interest rates to stem inflation.
The Commerce Department said its PCE headline index, which includes food and energy, rose 5.5 percent in November from a year earlier. in line with analysts’ forecasts and decelerated from 6.1% in October.
Month-on-month, the PCE headline index rose 0.1% in November, in line with analysts’ expectations. after rebounding 0.4% in October.
As for the core PCE index, which excludes the food and energy sectors. And a gauge of inflation that the Federal Reserve (Fed) cares about, it rose 4.7% in November year over year. which is the lowest level since October 2021 and in line with analysts’ forecasts After increasing 5.0% in Oct.
Month-on-month, the core PCE index rose 0.2% in November, in line with analysts’ expectations. after rebounding 0.3% in October.
The PCE index is a gauge of inflation that can detect changes in consumer behavior. and covers a broader range of prices for goods and services than the Consumer Price Index (CPI) data.
The US Commerce Department also revealed that U.S. consumer personal spending rose 0.1% in November, below the 0.2% expected by analysts.
The Commerce Department also revised consumer spending for October to a 0.9 percent increase from previously reporting a 0.8 percent increase.
At the same time, the US Commerce Department said Orders for durable goods in the United States, such as aircrafts, cars and large machinery with a lifespan of three years or more, fell 2.1 percent in November after rising 0.7 percent in October.
Analysts had previously forecast durable goods orders fell 0.6% in November.
Durable goods orders, which fell 2.1 percent in November, were the biggest drop since April 2020. It was affected by the plunge in aircraft orders.
basic durable goods purchases This is a capital goods order excluding aircraft. and weapons products It is an indication of business spending plans, rising 0.2% in November.