December 1, 2017
“No tears in the writer, no tears in the reader. No surprise in the writer, no surprise in the reader.” – Robert Frost
Brian Nick, Chief Investment Strategist, TIAA Investments
With more money in their pockets, inflation under control, and the jobless rate currently at a 17-year low, consumers haven’t felt this good in, coincidentally, 17 years. Among the week’s reports:
Housing releases were also upbeat:
Across the Atlantic, the Eurozone’s manufacturing and service sectors continued to gather steam. Markit’s “flash” (preliminary) Purchasing Managers’ Index for November registered 57.5, up from 56 in October and its best showing since April 2011. Firms are struggling to meet demand even as they create jobs at the fastest rate since the dot-com boom. Markit believes that last month’s PMI equates to a 0.8% expansion in fourth-quarter Eurozone GDP, which would cap the region’s best year in a decade.
Meanwhile, the European Commission’s economic sentiment gauge reached a 17-year peak in November. The buoyant mood was compounded by expectations of higher prices among manufacturers and consumers, a positive signal for the European Central Bank’s efforts to raise inflation closer to its 2% target.
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