As we look at the resilience of the U.S. consumer in the face of economic challenges, this week’s insights reveal key trends that are impacting the economy and investment strategies:
- Consumer Price Index for last December: Higher than expected, suggesting possible inflation concerns.
- Shelter Index Contribution: Significant increase of 6.2% year-over-year, driving up CPI.
- Real-Time Data Perspective: Zillow Observed Rent Index decreases, indicating a slower pace in housing cost increases.
- Core CPI Excluding Shelter: Only a 2.2% increase year-over-year, aligning with the Fed’s inflation target.
- U.S. Consumer Strength: Retail sales were up by 0.6% in December, suggesting robust consumer spending.
- Fed’s Monetary Policy Outlook: Potential shift towards a more balanced approach, moving away from restrictive policies.
- Economic Implications: Strong consumer spending hints at a stable economic landing in 2024.
More from TWO THE POINT
- Two the Point — Unpacking Q1 Economic Trends and Market Dynamics
In our weekly video series, we highlight one observation we think is most important regarding the economy and the financial markets. This week we explore our analysis of Q1 economic performance. - Two the Point — Unveiling Opportunities Beyond the Magnificent SevenIn our weekly video series, we highlight one observation we think is most important regarding the economy and the financial markets. This week we revisit Q1 2024’s earnings outlook, highlighting the sustained momentum of major tech players.
- Two the Point — Juggling Growth – Economy Expands Amid Unyielding InflationIn our weekly video series, we highlight one observation we think is most important regarding the economy and the financial markets. This week we discuss resilient consumer spending and unexpected inflation dynamics.
