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Stocks slip as revised core PCE and GDP prices run hotter

July core PCE rose 0.2% month over month and 3.3% year over year, while revisions pushed second-quarter GDP output prices higher, lifting the GDP price index to 6.4% from 6.3%.

Reported · Written up by our desk · Economy

The Dow Jones Industrial Average traded slightly below 53,500 and was about 100 points lower after a 12:30 GMT data release, with wires describing the move as uneventful but markets focusing on price revisions.

July core personal consumption expenditures increased 0.2% from the prior month and 3.3% year over year, in line with consensus. The second-quarter GDP revisions, however, were not, with real output left unchanged at a 1.5% annualized pace while multiple price measures moved higher.

FXStreet said the GDP price index rose to 6.4% from 6.3%, quarterly headline PCE prices were revised to 5.3% from 5.1%, and quarterly core PCE prices were revised to 3.7% from 3.4%, all above consensus expectations. The outlet added that the revision impact was concentrated in the deflator.

On the household side, personal income rose 0.4% in July versus a 0.3% consensus, while personal spending rose 0.2% in line with expectations. FXStreet noted that nominal spending increased by roughly the same amount as prices, leaving real consumer spending flat for the month.

Latest closeDow Jones 53,732.41 ▼0.2%

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