Announced this morning, Personal Income increased 0.4% in November, as expected. Personal Spending increased 0.6% in November, also as expected. Initial Jobless claims were 205,000 the week ending December 18th, maintaining a healthy level well below 300k considered normal for the labor market. Meanwhile, the PCE Deflator, a measure of inflation, remains elevated increasing 5.7% on an annual basis. The Core PCE Deflator, which excludes food and energy prices, also remains elevated growing 4.7% on an annual basis, slightly above expectations. Overall, inflationary pressures remain poignant, substantiating the recent moves by the Federal Reserve to speed up tapering and plans for interest rate increases in 2022. Companies that can absorb higher prices and even pass them on to consumers should be well positioned and the ability of consumers to continue to spend amidst these challenges will be key for economic growth moving into the new year. In all, the 10-year US Treasury yield ticks lower and equity futures are higher as we head into the market open. Have a safe and happy holiday season!
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.
