Personal consumption expenditure price index stayed above 4%, indicating stubborn inflation forces despite multiple interest rate hikes by the Federal Reserve.
First quarter GDP was revised higher from the previous estimate after consumer spending, government spending and nonresidential fixed investment estimates were revised higher.
Existing home sales in April declined for the second month in a row and extended a recent twelve-month slide interrupted only in January. Rising interest rates and elevated home prices and lack of inventory kept buyers away from the market.
Housing starts and building permits declined and stayed at depressed levels in April compared to a year ago as higher prices and interest rates weighed on the market.
U.S. import prices rose for the first time in four months in April led by a rebound in fuel prices. Export prices increased and rebounded from the previous month's decline after agriculture and non-agriculture costs advanced.
Producer price index in April slowed to the lowest level since January 2021. The index was driven higher by portfolio management and gasoline prices and food and alcohol wholesaling and hospital inpatient and outpatient care.
Consumer prices rose at a slower pace in April reflecting price decline in energy products and used vehicles and slight easing in food and shelter inflation. Prices are still rising across a broad range of products and services, keeping the inflation well above the Fed's target level.
The Federal Reserve raised the fed funds rates by 25 basis points in a unanimous decision but also left the door open to pause future rate hikes depending on the developments in the economy and inflation path.
Private sector accelerated hiring in April as small and medium sized employers added jobs at a faster pace. Job gains were driven by increases in leisure and hospitality and healthcare industries. Wage gains moderated in April but stayed elevated.
Job openings declined in March as more employers in transportation, warehousing and utilities trimmed openings. Job cuts in construction, accommodation and food services, and health care drove layoffs to 1.8 million.
The closely watched measure of headline inflation eased in March but core inflation stayed nearly unchanged highlighting well anchored inflation and the spread of price increases from goods to services.
Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected a downturn in private inventory investment and a slowdown in nonresidential fixed investment.
