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The Morning View: January 29, 2020

In this morning’s data, Personal Income increased 0.6% in December, more than expected.  Personal Spending decreased -0.2% in December, also better than expected, but still negative.  Meanwhile, earlier this week the first reading of GDP in the 4th quarter 2020 indicated the economy grew at an annualized 4.0% rate, moderating from the annualized 33.4% in the third quarter.  The result is real GDP decreased 3.5% in 2020. In the same GDP report, Personal Saving was $2.3 trillion, which was 13.4% of disposable personal income. Overall, income did improve from the negative reading the previous month while spending remains in negative territory.  This dynamic is highlighted in the personal savings rate of over 13%, as increased cases and restrictions in previous weeks kept some people from spending. The efficacy of vaccines and streamlined distribution will be key for giving people confidence to leave home and spend additional dollars, leading to improved economic activity in the months ahead.  In all, bond yields are little changed and equity futures are lower 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.