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 December 2017 for updates.
Here are some key highlights:
- Sales of new homes increased 6.2% in October to 685000 – a new high! This is not signaling to a housing bubble since the sales surge is not coupled with a price surge. Median price of a new home is up only 3.3% on the year.
- Rising consumer confidence is at a new expansion high (129.5 in November). Largely due to optimism in the job market and expected stock market gains.
- The stock market highs may partly be due to expectation of corporate tax cuts and their on going effects. GDP growth has been 3% last two quarters while consumer spending as of October has been at 4.2%, posing no threat of over heating.
- International trade deficit is expected to widen in October to $47.1 billion, up from September’s $43.5 billion, due to falling exports and a jump in imports of consumer products.
- Growth in corporate profits have continued to lag the growth of the stock market. Pre tax profits packed in 2012 and really have expended only 10% over the past 5 years.