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The Morning View: February 26, 2021

Announced this morning, Personal Income increased 10.0% in January, more than expected.  Personal Spending increased 2.4% in January, which was slightly lower than estimates.  Meanwhile, the January core PCE Deflator, a closely watched measure of inflation that excludes food and energy prices, grew only 1.5% on an annual basis. Overall, income grew considerably during the month, likely impacted by individuals receiving stimulus checks from the fiscal plan passed at the end of 2020.  Spending did improve from the previous month’s negative figure, but the large difference between the income and spending rate has pushed the savings rate to 20.5% in January.  It remains to be seen how much of individual’s savings will be spent once economic activity returns.  Additionally, inflation remains benign with readings still below the 2% average target.  In all, bond yields tick lower this morning, after the 10-year treasury reached 1.6% yesterday, 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.