US Households in Better Shape than Business

John Robertson


Last week’s relatively strong U.S. capital spending data accompanied by a small increase in jobless numbers contributed to a slightly more positive equity market tone. For several years, both measures have been valuable indicators of the momentum behind U.S. equity prices. Now, they are diverging in their implications for the market. The capital spending data are consistent with a loss of market momentum while the labour market data are more consistent with readings of moderate growth coming from the broader economy. This recent wire (VIEW LINK) highlighted the existence of a US business sales recession which is not evident in the broader economic outcome. The recent numbers also draw out the disparity in performance between household and business sector economic outcomes. (VIEW LINK)

John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...


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