PCE inflation data favored by the Federal Reserve came to a standstill for the first time in nearly a year in March, and consumer spending was strong. This was a welcome relief before the market anticipated that tariffs would generally push up prices. According to data released by the US Bureau of Economic Analysis, the PCE index has been stagnating since February. Excluding food and energy, core PCE also remained flat, at its mildest level in nearly five years. After adjusting for inflation, actual personal consumption expenditure increased at a monthly rate of 0.7% in March. Previously, the data was revised upward from the previous month, indicating that households spent heavily to avoid the new tariffs. These figures put an end to the first quarter, when the US economy contracted for the first time since 2022 due to a surge in pre-tariff imports and moderate consumer spending.

PCE inflation data favored by the Federal Reserve came to a standstill for the first time in nearly a year in March, and consumer spending was strong. This was a welcome relief before the market anticipated that tariffs would generally push up prices. According to data released by the US Bureau of Economic Analysis, the PCE index has been stagnating since February. Excluding food and energy, core PCE also remained flat, at its mildest level in nearly five years. After adjusting for inflation, actual personal consumption expenditure increased at a monthly rate of 0.7% in March. Previously, the data was revised upward from the previous month, indicating that households spent heavily to avoid the new tariffs. These figures put an end to the first quarter, when the US economy contracted for the first time since 2022 due to a surge in pre-tariff imports and moderate consumer spending.