The elements of the CPI used to deflate core retail sales in tracking of real PCE growth were slightly below expectations in August. Weaker PCE control group prices imply a slightly stronger rate of real consumption growth on the month.
"This boosted our tracking estimate of overall Q3 real consumption growth one-tenth, to 3.2%, but left our Q3 GDP tracking estimate unchanged at 2.4% after rounding", says Barclays.