US Economic Data: GDP, PCE, Jobless Claims, Durable Goods, New Home Sales

US Economy Grew Slower Than Expected in Q1

The U.S. economy expanded at a 1.6% annualized rate in the first quarter of 2026, below the initial 2.0% reading and missing expectations for a rebound from Q4's meager 0.5% growth. International trade was a drag, and consumer spending was revised lower.

PCE Inflation Heats Up on Annual Basis

The March Personal Consumption Expenditures (PCE) price index showed headline inflation at 3.8% year-over-year and core at 3.3%, both in line with expectations but marking a rebound that dents hopes for imminent Fed rate cuts. Monthly readings decelerated.

Jobless Claims Exceed Expectations

Initial jobless claims rose to 215,000 last week, above the forecast of 211,000. Continuing claims edged up to 1.786 million, indicating a slight loosening in the labor market.

Durable Goods Orders Surge on Aircraft Demand

New orders for durable goods jumped 7.9% in April, beating the 3.5% estimate, driven by a 165.9% surge in commercial aircraft orders. However, core capital goods orders unexpectedly fell 1.1%.

New Home Sales Unexpectedly Decline

Sales of new single-family homes dropped 6.2% in April to a seasonally adjusted annual rate of 622,000 units, missing the consensus of 665,000. The months' supply rose to 9.4 from 8.7 in March.