Americans spent 0.5% more in September, but after adjusting for higher prices, consumption barely grew. What worried me about last night's data was that consumption has already slowed while prices are still rising. $BTC It won't be easy to reverse this weakness by relying on expectations of rate cuts.
Binance spot prices initially rose to nearly $82,000 after the data was released, then turned lower early this morning and had fallen to around $77,000 by midmorning. I think any rebound over the next day or two is still likely to be pushed back down by selling. If prices can climb back above the roughly $80,000 level from before the data release and hold there, that would weaken this short-term view. Prices rose first and then fell, but the timing alone isn't enough to attribute the entire decline to PCE.
The PCE price index rose 3.6% year over year. Excluding food and energy, it was still up 0.3% month over month, the same as in August, so it's not accurate to say inflation is accelerating across the board. But consumption didn't increase significantly, and real disposable income also fell 0.3% that month, meaning consumers' purchasing power is weakening too.
Binance spot prices initially rose to nearly $82,000 after the data was released, then turned lower early this morning and had fallen to around $77,000 by midmorning. I think any rebound over the next day or two is still likely to be pushed back down by selling. If prices can climb back above the roughly $80,000 level from before the data release and hold there, that would weaken this short-term view. Prices rose first and then fell, but the timing alone isn't enough to attribute the entire decline to PCE.
The PCE price index rose 3.6% year over year. Excluding food and energy, it was still up 0.3% month over month, the same as in August, so it's not accurate to say inflation is accelerating across the board. But consumption didn't increase significantly, and real disposable income also fell 0.3% that month, meaning consumers' purchasing power is weakening too.
