Source: Wall Street News Author: Li Xiaoyin
The final value of the core PCE in the fourth quarter was revised down from 2.1% to 2%, but the final value of PCE in the fourth quarter was revised up from 3% to 3.3%.
The US GDP unexpectedly improved in the fourth quarter, indicating strong economic growth and cooling of inflation.
On Thursday, March 28, the US Department of Commerce announced the final value of the annualized quarterly quarterly US GDP for the fourth quarter. The final value of the annualized quarterly quarterly value of the US GDP for the fourth quarter was revised to 3.4%, compared with the previous value of 3.2%.
The final annualized quarterly value of the US core personal consumption expenditure (PCE) price index for the fourth quarter, which was announced at the same time, was revised to 2% from the previous value of 2.1%, exceeding expectations of 2.1%; however, the final annualized quarterly value of the personal consumption expenditure (PCE) price index rose from 3% above expectations to 3.3%.
Some analysts said that the improvement in GDP data shows that the US economy is still growing strongly. It is expected that GDP will slow to a “healthy level” of 2% in the first quarter of this year, and can maintain a sustainable growth rate of 1.8% for a long time.
Furthermore, the number of people applying for unemployment benefits for the first time remained unchanged at 210,000 last week. It is still hovering near an all-time low, indicating that the labor market is still resilient.
Despite interest rates being at their highest level in decades, the US economy has continued to grow strongly since the second half of 2023. There are opinions that if the Federal Reserve cuts interest rates later this year according to general expectations, the economy may recover sharply.
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