Monthly Market Brief – July

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 here for the July 2016 update.

Here are some key highlights:

POSITIVES

o The U.S. economy added 287,000 jobs in June, crushing expectations by 107,000

o Demand seems to be increasing at a faster rate than expected as indicated by a better- than-expected ISM Manufacturing Index reading of 53.2 in June

o While housing prices have slowed most recently, low mortgage rates & tight supply have continued to help propel home prices higher; in fact, the average price for an existing single family home is quickly closing in on the peak pre-financial crisis average price

CHALLENGES

o While recent farm prices have trended up over the last month, farm prices over the last year remain in a downward trend; thus, inflation will likely remain below the Fed target of 2% & keep the FOMC from raising interest rates in the near term

o The recent U.K. vote to leave the European Union caught market participants flat footed and uncertainty will likely put downward pressure on U.S. inflation as the dollar strengthens