Overview
- Consumer spending rose at a 3.5% annualized pace and exports rebounded 8.8%, leading the strongest quarterly growth in two years.
- The PCE price index increased 2.8% and core PCE 2.9%, signaling inflation pressures that remain above the Fed’s 2% target.
- Treasury yields climbed after the data and CME FedWatch put the probability of a January rate cut near 13%.
- Economists caution that the late release and disrupted data collection from the October–November government shutdown raise revision risks and reduce near‑term visibility.
- President Donald Trump credited tariff policies for the results in social-media posts, even as analysts note uneven, higher‑income‑led consumption.