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The core PCE posted respective readings
October 29, 2026
CNBC reports that excluding food and energy, the core PCE posted respective readings of 0.3% and 3.1%, in line with the consensus.
NPR reports that the US economy grew faster in the summer compared to the spring, driven by consumer spending as well as investments in AI. NPR reports that a big driver for GDP growth in the third quarter was the strong investments from AI companies, which continue to build out data centers and spend big money in developing the technology. The US economy grew at its fastest pace in a year in the third quarter, shrugging off higher oil prices stemming from the conflict in the Middle East as consumers maintained robust spending and businesses doubled down on investment in AI, Reuters reports.
CNBC reports that excluding food and energy, the core PCE posted respective readings of 0.3% and 3.1%, in line with the consensus. In the 12 months through September, PCE inflation advanced after rising 3.4% in August, Reuters reports. GDP increased at a seasonally adjusted annualized pace of 3.4%, better than the 3.1% estimate and well ahead of the 2.2% in the second quarter, CNBC reports. Gross domestic product, which broadly measures economic activity, grew at an annual rate of 3.4 July through September according to a report from the Commerce Department released Thursday, NPR reports. According to Reuters, gross domestic product increased at a 3.4% annualized rate last quarter, the quickest since the third quarter of 2025, the Commerce Department's Bureau of Economic Analysis said in its first estimate of third-quarter GDP. According to CNBC, while inflation continued to run ahead of the Fed's 2% target, the Commerce Department also reported that gross domestic product was strong in the third quarter. Prices rose 3.6% in September from a year earlier, according to the same report, faster than the Federal Reserve's 2% target, NPR reports.
NPR reports that the US economy grew faster in the summer compared to the spring, driven by consumer spending as well as investments in AI. NPR reports that a big driver for GDP growth in the third quarter was the strong investments from AI companies, which continue to build out data centers and spend big money in developing the technology. The US economy grew at its fastest pace in a year in the third quarter, shrugging off higher oil prices stemming from the conflict in the Middle East as consumers maintained robust spending and businesses doubled down on investment in AI, Reuters reports. The reports come the day after the Fed voted to hold its benchmark interest rate in a range between 3.75%-4%, CNBC reports. Economists polled by Reuters had forecast GDP advancing at a 3.2% pace, Reuters reports. The Fed watches the Commerce Department's inflation measure closely, particularly when deciding what to do with its benchmark interest rates, NPR reports. Reuters reports that "Most of that growth has been lopsided, focused on the AI buildout. Wages for the typical worker still aren't keeping up with increasing prices." Reuters reports that imports increased at a 19.7% rate, the quickest since the first quarter of 2025, when businesses were front-loading orders to avoid higher costs from Trump's sweeping tariffs. According to Reuters, Joseph Brusuelas said, "The consequences of an economy at full employment in addition to a historic capital expenditures expansion are on vivid display". Initial jobless claims edged lower to a seasonally adjusted 194,000 for the week ended October 24, below the estimate for 200,000 and near levels last seen in the late 1960s, CNBC reports. According to CNBC, Chris Rupkey said, "Net, net, economic growth is powering ahead despite the uncertainty of geopolitical risks and the damage posed to many sectors of the economy by higher energy costs". According to Reuters, Kyle Moore said, "Growth isn't enough to give American families economic security". Although consumer spending has been growing steadily, consumer spending has not spread out evenly across households, with lower-income Americans struggling more than high-earners, NPR reports.
Still developing
NPR reports that the Fed watches the Commerce Department's inflation measure closely, particularly when deciding what to do with its benchmark interest rates. Reuters reports that "Most of that growth has been lopsided, focused on the AI buildout. Wages for the typical worker still aren't keeping up with increasing prices." Although consumer spending has been growing steadily, consumer spending has not spread out evenly across households, with lower-income Americans struggling more than high-earners, NPR reports.
How settled the reporting is
Sources
- CNBC — Third-quarter U.S. GDP increases a better-than-expected 3.4% as September inflation accelerates
- NPR — With days to go before the midterms, data shows the U.S. economy is doing well
- Reuters — Robust consumer spending, AI-related investment power US economy in third quarter | Reuters
- AP News — US economy grows at brisk 3.4% pace in third quarter on strong consumer spending and AI investment - AP News
Toggle read the full reports of 3 of the 5 outlets counted on this event. The other 2 are counted from their headlines and opening sentences.