In this morning’s data, Personal Income decreased -7.1% in February, slightly better than estimates. Personal Spending decreased -1.0% in February, which was more negative than expected. The February PCE core Deflator, a closely watched measure of inflation that excludes food and energy prices, remains low increasing only 1.4% on an annual basis. Overall, a large decrease in personal income and small decrease in spending, driven mostly by the impact a 10% increase in personal income in January, when stimulus checks were received. Meanwhile, inflation data points remain muted. As the difficulties in the labor market continue, it is imperative to focus on vaccinations which should give people confidence to return to pre-pandemic activities as much as possible, allowing jobs to return in the hardest hit sectors. In all, bond yields ticked lower following the release of the income and spending data, and equity futures are mixed as we head 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.