Mixed Economic Signals: Fed's Inflation Gauge Eases, GDP and Consumer Confidence Revised Down, Housing Market Falters

The core personal consumption expenditures price index (PCE), the Federal Reserve's preferred measure, rose just 0.1% from the previous month in May, although April's reading was revised upward to 0.3% from 0.2%. On a year-over-year basis, the index rose 2.6%, down from 2.8% in April. Personal income rose 0.5% last month, although spending was moderate, rising 0.2%.

The third and final first quarter GDP data was released on Thursday. Although overall GDP was revised up 0.1% to an annual rate of 1.4%, the closely watched personal consumption component was revised down to 1.5%, after initially being reported at 2.5%. Final sales to household consumers remained solid at 2.6%, albeit revised down from an initial reading of 3.1%.

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