Europe Asia News

According to CCTV, the US economy grew by 2% on an annualized basis in the first quarter of 2026. This figure fell short of economists’ expectations of 2.3%. The data was released by the US Department of Commerce.

On the inflation side, the core Personal Consumption Expenditures (PCE) price index increased by 4.3% on an annualized basis in the first quarter. This figure exceeded expectations of 4.1% and marked a notable rise compared to 2.7% in the previous quarter.

On a yearly basis, the core PCE rose by 3.2% in March, in line with expectations. In February, this rate was 3%. The overall PCE price index increased by 3.5% annually in March, reaching its highest level since June 2023.

Despite the slowdown in economic growth, resilience in the labor market continued. For the week ending April 25, initial jobless claims were reported at 189,000. This figure came in below the expectation of 212,000, indicating the continued strength of the labor market.

The PCE price index, which is closely monitored by the US Federal Reserve (Fed) in monetary policy decisions and inflation targeting, is among the most important indicators.