20th Feb 2026 14:04
(Alliance News) - US core personal consumption expenditures grew at a faster rate than expected in December, the US Bureau of Economic Analysis reported on Friday, but gross domestic product growth missed the consensus forecast.
PCE grew by USD91.0 billion or 0.4% on a monthly basis in December, accelerating from 0.2% in November and beating the 0.3% rise projected by FXStreet-cited consensus.
The 0.4% growth "reflected an increase of USD98.5 billion in spending on services and a decrease of USD7.5 billion in spending on goods," the bureau said.
Annually, the PCE price index for December was up 2.9%, compared with a 2.8% rise in the year to November and also ahead of the consensus for another 2.8% increase.
For the fourth quarter of 2025, according to the bureau's preliminary estimate, the PCE price index increased 2.9% annualised quarter-on-quarter, also accelerating from a 2.8% rise and above the consensus forecast of another 2.8% increase.
The core PCE price index was up 0.4% on a monthly basis in December, accelerating from 0.2% in November and beating the 0.3% rise projected by FXStreet-cited market consensus.
Annually, the core PCE price index rose 3.0%, compared with a 2.8% rise in the year to November and also ahead of the consensus for a 2.9% increase.
For the fourth quarter of 2025, preliminary figures showed core PCE increasing 2.7% on-quarter, slowing from a 2.9% rise in the third quarter but above the consensus forecast of a 2.6% rise.
Also on Friday, the bureau reported that the gross domestic product price index rose 3.7% in the fourth quarter, according to preliminary figures, unchanged from the prior period.
Real GDP for the quarter grew 1.4% on an annual basis, also according to preliminary figures, slowing from 4.4% in the third quarter and below the consensus for 3% growth.
The main contributors to GDP growth in the fourth quarter "were increases in consumer spending and investment."
By Emma Curzon, Alliance News reporter
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