4/5/23 Market Snapshot: Personal Consumer Expenditures Index, Consumer Sentiment Index

The first quarter of 2023 closed on a positive note with all three major equity indices up for the week. The markets rallied on Friday following the release of the core Personal Consumption Expenditures (PCE) index for February. This preferred inflation metric of the Federal Reserve came in slightly below expectations with a year over year gain of 4.6%, below last month’s reading of 5.4%. The markets were also helped by reports of an increase in U.S. Consumer Spending in February. However, the consumer may weigh on future economic outlook as the University of Michigan Consumer Sentiment Index fell to 62.0, which was below economists’ expectations. This marked the survey’s first decline in four months.