BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager
In this morning’s announcement, the first reading on U.S. GDP growth for the first quarter 2019 shows an increase of 3.2% at annual rate, well above forecasts. Increases in business inventories and exports drove the strength; personal consumption expenditures were a bit weak. The core PCE rate, another measure of inflation, grew 1.3% in the quarter, slightly lower than expected. While growth over 3% with limited inflation appears positive, inventory expansion is not likely to recur in subsequent periods. In addition, subdued personal consumption is a challenge, given consumer spending comprises close to 70% of the GDP calculation. While equity futures and bond yields initially moved higher immediately following the report release, equity futures are now mixed and yields are lower as we move closer to 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.
