US PCE, GDP, ADP reports: inflation cools, consumer spending strong

27% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Data Tornado: Pce, Gdp, Adp, Et Al Wednesday offered a investors cornucopia of mostly upbeat economic data, so let's dig in, starting with the Commerce Department's August Personal Consumption Expenditures (PCE) report. 4% year-on-year. 4% consensus.

3 percentage points south of analyst estimates. 3%, respectively, both cooler than economists predicted. 9% just yesterday, according to CME's FedWatch tool. "For the Fed, the August PCE report is a glass half empty," says Bill Adams, chief US economist at Fifth Third.

"Inflation’s trend is lower but still not close to their target and not improving, either. 4% growth analysts expected. 1% growth projected by economists. 6%.

S. consumer continues to make clear that reports of a spending slowdown remain greatly exaggerated," says Olu Sonola, head of US economics at Fitch. S. 7 percentage points.

1 percentage points from the topline. 53 pps from the headline figure. 74 pps to the total. S.

economy, did the heavy lifting as always. 4%. 5 percentage points to the topline number. 3%.

"Today’s report doesn’t indicate that the economy is accelerating dramatically and is far from overheating, but it does confirm that it’s in better shape than prior data suggested and remains much more resilient than many had feared," writes Jim Baird, CIO at Plante Moran Financial Advisors. Pivotoing to the labor market, the private sector added 90,000 jobs in September, a 150% surge from August and 20,000 more than economists projected, according to payrolls processor ADP. ADP has a sketchy track record as a predictor of official government data, but then so do analysts, at times.

6% weaker than the 45,000 private payrolls increase expected from the Labor Department's more comprehensive jobs report, due on Friday. Following Tuesday's JOLTS report, which showed an uptick in hiring, the ADP report adds a further evidence that the labor market is in solid (if not spectacular) shape ahead of Friday's jobs report, which is expected to show the US added 85,000 private sector jobs in September, just 5,000 short of the ADP figure. The graphic below tracks ADP's National Employment Index and measures its accuracy (or lack thereof) relative to Labor Department data.

The indefatigable Commerce Department also released its advance take on goods trade balance and wholesale inventories for August. 6 billion more than analysts expected. 6% drop in consumer goods. S.

3% growth. The inventory build-up in anticipation of potential war-related supply chain bottlenecks continues to wobble back toward equanimity. 6 points north of economists' predictions. A PMI reading above 50 indicates activity expanded compared with the previous month.

0. Finally, in the housing market, financing home loans is growing evermore costly, and would-be borrowers aren't having it. 30%. according to the Mortgage Bankers Association (MBA).

0% drop in total demand. 4%. (Stephen Culp) *** Earlier On Live Markets: Softer Pce Helps Lift Us Stocks, But Sector Leadership Remains Mixed Click Here Td Cowen Says Ai Promises Hospitals A Margin Cure Click Here Cooler Than Expected Pce Adds Some Steam To Us Stock Futures Click Here A Bullish Inflection Point For Uk Assets? Click Here What To Think About In Q4 Click Here Stocks Poised For Next Leg Higher...

If Oil Drops Click Here Stoxx Set For Monthly Fall, But A Steady Quarter Click Here Before The Bell: Set To End The Month On A High Note Click Here A Cruel Quarter For Bonds Click Here AmendedPCE0932026 EarlyTrade0932026 Inflation gauges PCE outlays vs saving rate GDP contributors ADP vs the Labor Dept Chicago PMI vs ISM Mortgage rates and demand (Terence Gabriel is a Reuters market analyst. The views expressed are his own)