BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager
In this morning’s announcement, the first reading indicates GDP grew by 2.1% in the second quarter 2019, higher than expected but below the 3.1% reading in the previous quarter. The result was driven by strong consumer and government spending, while business investment was weak; which highlights the bifurcated nature of the current economy. The core PCE, a measure of inflation monitored by the Federal Reserve, increased 1.8% in the quarter, which remains below the stated target of 2%. Overall, a decent report as the economy continues to grow, albeit slower than last quarter, and the first half of 2019 averages to the mid 2% range. The Federal Reserve will have to contemplate both strong and weak economic data points at their upcoming meeting. In all, bond yields initially ticked higher following the report and equity futures are higher heading into the market open.
This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Forward‐looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.
