Higher Than Expected PCE Numbers Push Bitcoin Down
Month-on-month core Personal Consumption Expenditure rose 0.6% in Jan. 2023, higher than analysts’ 0.4% prediction and December’s 0.3% rise.
The latest spending data affirmed earlier fears of a booming job market as personal income rose 0.6% after a 0.2% gain in December 2022, while personal spending increased 1.8%.
Stocks and Bitcoin Fall as Both Core and Headline PCE Rises
Headline PCE, which includes food and energy, rose 5% year-on-year, up slightly from 4.9% in December 2022.
The U.S. Bureau of Economic Analysis reports personal income, personal spending, and PCE Price Index monthly in its Personal Income and Outlays Report.
After the news, stock markets took a hit, with the Dow Jones falling 300 points and more pain expected for growth stocks. Nasdaq 100 futures fell 1.7%, while the S&P 500 Futures was down 1.2%. Market strategist Sven Henrich noted that PCE numbers likely present stock buying opportunities.