US Core PCE Muted, Consumer Spending Solid in Dec.

The video tutorial discusses economic indicators for December, highlighting a 4/10 increase in personal incomes and a 7/10 rise in spending, surpassing forecasts. It connects these figures to strong consumer spending reflected in the quarterly GDP. The PCE price index shows a 3/10 monthly increase, with a 2.6% year-over-year rise, aligning with Fed Chair Powell's predictions. The ECI indicates a 9/10 gain in wages and salaries, suggesting Americans are keeping ahead of inflation. The Fed monitors these trends closely as they align with expectations.

What was the increase in personal incomes during December?

• 6/10

• 3/10

• 4/10

• 5/10

How much did consumer spending increase in December compared to the forecast?

• It was significantly more than forecast

• It was slightly more than forecast

• It matched the forecast

• It was less than forecast

What was the year-over-year increase in the core PCE price index?

• 2.6%

• 2.4%

• 3.0%

• 2.8%

What was the gain in the Employment Cost Index (ECI) for the quarter?

• 9/10

• 8/10

• 7/10

• 10/10

How did benefit costs change according to the ECI?

• Increased by 10/10 of 8%

• Increased by 8/10 of 8%

• Increased by 9/10 of 8%

• Increased by 7/10 of 8%