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Construction spending fell 0.4% MoM in April, missing the 0.4% gain forecast and improving from March’s 0.8% decline, underscoring ongoing weakness in construction activity.

S&P Global’s Manufacturing PMI for May came in at 52.0—below the 52.3 forecast but up from April’s 50.2—signalling continued expansion in U.S. factories, albeit at a slightly slower pace than expected.

The core PCE price index rose 0.1% month-on-month in April, matching forecasts and holding steady from March. On an annual basis, core PCE inflation remained at 2.5%, in line with expectations but down from 2.7% a year earlier. The overall PCE index also gained 0.1% MoM—versus a flat reading previously—while headline inflation eased to 2.1% year-on-year, below the 2.2% consensus and down from 2.3%.

Personal income jumped 0.8% MoM—well above the 0.3% forecast and up from March’s 0.7%—as stimulus payments and wage gains boosted household wallets. Personal spending rose 0.2% MoM, in line with estimates but a sharp slowdown from a 0.7% uptick, while real (inflation-adjusted) consumption edged up just 0.1%, signaling that higher incomes are only partially translating into spending.

The Treasury sold four-week bills at a yield of 4.215%, down from 4.220% at the previous auction. Eight-week bills fetched 4.225%, versus 4.235% last time, reflecting strong demand for short-term funding.

Pending Home Sales fell 6.3% month-on-month in April, versus forecasts for a 0.9% decline and after a 5.5% gain in March, pushing the index down to 71.3 from 76.1 and underscoring cooling activity in the housing market pipeline.

Core PCE prices rose 3.4% quarter-on-quarter in Q1, below the 3.5% expected but up from 2.6% in Q4, highlighting slowing underlying inflation pressures. Headline PCE inflation held at 3.6%, in line with forecasts and above the 2.4% increase last quarter. Real consumer spending grew just 1.2% QoQ—well under the 1.8% consensus and sharply down from 4.0%—signaling a pullback in household outlays. Corporate profits plunged 3.6% QoQ, far below the 5.9% gain anticipated and down from a 0.4% drop previously, underscoring profit margins coming under strain.

Real GDP contracted 0.2% quarter-on-quarter in Q1, against a forecasted 0.3% decline and following a 2.4% expansion in Q4. The GDP Price Index climbed 3.7% QoQ, in line with projections and up from 2.3%, highlighting significant price pressures. GDP sales slumped 2.9% QoQ, deeper than the 2.5% forecast drop and reversing a 3.3% gain, underscoring soft demand.

Initial jobless claims increased to 240,000, above the 229,000 forecast and up from 226,000 the prior week, suggesting a modest uptick in layoffs. Continuing claims rose to 1,919,000, exceeding the 1,890,000 estimate and edging up from 1,893,000, indicating sustained pressure in the job market. The four-week moving average of initial claims eased slightly to 230.75K from 231.00K.

Nvidia (NVDA) reported Q1 2025 earnings of $0.96 per share, beating the estimate of $0.93. Revenue came in at $44.06 billion, ahead of the expected $43.31 billion. The company saw strong demand for its AI chips as clients accelerated orders ahead of new U.S. export restrictions on China. Despite geopolitical concerns, China-related demand held up better than feared, supporting a bullish outlook.

The US Treasury sold three-month bills at a yield of 4.255%, down from 4.285% at the prior auction, signaling strong demand for the shortest-term paper. Six-month bills fetched 4.160%, up from 4.140%, while the two-year note auction yielded 3.955%, above the previous 3.795%, reflecting higher intermediate-term rates.

The Atlanta Fed’s GDPNow model now projects U.S. real GDP growth of 2.2% for the second quarter, down from both the prior 2.4% estimate and the 2.4% consensus, suggesting a modest downward revision to early-quarter economic momentum.

The Conference Board’s Consumer Confidence Index rose to 98.0 in May, far above the 87.1 consensus and up from April’s 85.7, signalling a notable improvement in household optimism and spending intentions.