Fine Fundamentals

Consumer spending increased 0.4% in November, the ninth straight monthly rise. From 11/1/18-12/24/18 sales rose 5.1% Y-o-Y. Wages are up 3%/year, the fastest pace in over a decade. Moreover, capital expenditures by firms, while not growing, are not meaningfully declining. Lastly, government spending, despite the shutdown, will remain a positive force. Unless market turmoil causes consumers, the growth driver of the US economy in 2019, to curtail spending, we’re OK.