Archive for market brief

Monthly Market Brief-November 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 November 2017 for updates.

Here are some key highlights:


POSITIVES:

  • Despite the hurricane disruptions, Payrolls rose 261,000 in October. In just under 4 years, unemployment gone down from 7% in 2013 to 4.1% in 2017
  • Dow’s bullish run (up 19.1% YTD) and confidence in the job market has been fueling this year’s increasing consumer confidence.
  • The US economy has been resilient, real GDP increased at an annual rate of 3% in the third Quarter of 2017, primarily due to an increase in consumer spending, inventory investment, business investment and exports. This back to back quarterly growth of 3% is a first in three years.
  • Total exports obtained new highs, rising at 2.3% and were largely driven by financial and information services. The decline in dollar has made US products less expensive to foreigners.
  • Another positive is the contraction in imports. Consumer imports and vehicle imports have both been slowing, two trouble spots that have traditionally deepened the deficit.

CHALLENGES:

  • Another positive is the contraction in imports. Consumer imports and vehicle imports have both been slowing, two trouble spots that have traditionally deepened the deficit.

Monthly Market Brief – March 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 March 2017 for March 2017 updates.

Here are some key highlights:

POSITIVES:

  • The PCE Price Index advanced sharply to 1.9% in January; as inflation approaches the Fed 2% target along with full employment, the Fed will have met economic health goals necessary to begin the advancement of rate hikes
  • Personal income along with wages & salaries rose a solid 0.4% in January
  • The health of the labor market appears relatively good as jobless claims remain unusually low

CHALLENGES:

  • Even with consumer confidence reaching highs not seen since the Reagan years, the post-election surge has yet to spark much traction in economic data
  • Driven by an unusual weakness in service spending and a reversal in auto sales, consumer spending posted the weakest result in 5 months, up only 0.2% in January
  • Both the ISM Manufacturing Index & the Philly Fed Index have been making headlines regarding strong advancements, but actual data has yet to confirm these positive assessments
  • Ongoing strength in the U.S. dollar continues to weigh on exports & drive imports higher as U.S. products are more expensive to foreign buyers & foreign products less expensive to U.S. buyers