Monthly Market Brief-September

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 September 2017 for updates.

Here are some key highlights

 

 

 

 

 

 

POSITIVES:

  • Q2 GDP revised 4 tenths higher to hit the 3% annualized rate for the first time in two years.
  • Consumer spending rose at an inflation adjusted rate of 3.3%, best since Q2 of last year
  • Oil prices have strengthened in response to Hurricane Harvey & a strengthening Hurricane Irma.
  • Although factory orders for July declined to -3.3%, reflecting a slowing in strong prior gains for aircraft orders, there is 6 tenths upward revision to core capital goods orders up to a 1% gain and 2 tenths upward revision to core shipments, now at 1.2%. These numbers point to accelerating strength for third quarter business investment.

CHALLENGES:

  • Unemployment rates rose to 4.4% in August, up from 4.3% in July.
  • Trade surplus widened slightly in July to $43.7 Billion in July from $43.5 Billion in June, primarily due to fall in exports of 0.3%.
  • Trade gap with China widened by $1 Billion to $33.6 Billion, and widened with EU by$0.9 Billion to $13.5 Billion.