Monthly Market Brief- June 2017

Each month, our Heritage Investment team publishes a market brief to provide an overview of the major factors influencing the US economy, including a summary of key sectors and the current positives & challenges.

Click Market Brief June 2017 for June 2017 updates.

Here are some key highlights:

POSITIVES:

  • European equities continue to outpace the U.S. market with solid fundamentals and increased investor confidence in response to Emmanuel Macron’s French presidential win
  • The ISM non-manufacturing Index came in at 56.9, driven by strong backlogs and strength in employment
  • 1stquarter GDP was revised up from 0.7% to 1.2%

CHALLENGES:

  • As the pool of candidates dwindled to a 9 year low, non-farm payrolls posted its weakest reading in nearly 5 years, adding just 138,000 jobs in May
  • Wage growth remains surprisingly weak even as the unemployment rate sits at a 16-year low of 4.3%
  • The effects of low wages has likely played a part in weakening vehicle sales & a decline in existing home sales; further weakness in consumer spending is expected
  • Political uncertainty remains a near-term risk given the multiple challenges facing the Trump administration