Previous year's GDP was 2.8%, the economy appears to have slowed considerably, despite AI spending. And inflation is still quite elevated.
"The core personal consumption expenditures price index, which excludes food and energy, rose 3% in December, up 0.2 percentage point from November, according to a separate release. That matched the consensus forecast but kept the pivotal inflation measure well above the Fed’s 2% target." PCE is the FED's preferred number.
"On a headline basis, the PCE index accelerated 2.9%, or 0.1 percentage point higher than expected.
Both indexes rose 0.4% for the month, compared with the respective forecasts for 0.3%."
