The US economy showed mixed signals in recent data releases. The Personal Consumption Expenditures (PCE) price index for June increased by 2.6% year-over-year, slightly above the forecast of 2.5% and up from the previous 2.3%. The core PCE price index, which excludes food and energy, rose 2.8% year-over-year, also surpassing the expected 2.7% and remaining steady compared to the prior month. Month-over-month, both PCE and core PCE indices grew by 0.3%, matching expectations and accelerating from previous increases of 0.1% and 0.2%, respectively. Meanwhile, US labor market data for July indicated a slowdown in job growth with the unemployment rate rising to 4.2%, in line with forecasts but up from 4.1% in June. Average hourly earnings increased by 0.3% month-over-month and 3.9% year-over-year, both slightly above estimates and previous figures. Labor force participation edged down slightly to 62.2%. In Japan, the June unemployment rate held steady at 2.5%, meeting expectations, while the jobs-to-applicant ratio fell modestly to 1.22 from 1.24, slightly below the forecast of 1.25, suggesting a modest cooling in the labor market. In the Eurozone, preliminary inflation data showed the consumer price index (CPI) year-over-year at 2.0%, marginally above the forecast of 1.9%, with core CPI steady at 2.3%, matching expectations and the previous reading.
US job growth slows sharply in July; unemployment rate rises to 4.2% - https://t.co/NEarf9Fqdp via @R
US job growth slows sharply in July; unemployment rate rises to 4.2% - https://t.co/i8xhbsHcwA
⚠️BREAKING: *U.S. JULY UNEMPLOYMENT RATE RISES TO 4.2%; EST. 4.2%; PREV. 4.1% 🇺🇸🇺🇸 https://t.co/bs8p8h3wjE