My colleague Sam Millette, senior investment research analyst on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Economic Risk Factor Update. Thanks for the assist, Sam!
The economic data released in October largely came in better than expected, with increasing service sector and consumer confidence offsetting some of the declines we saw in September. Job creation also came in better than anticipated, and the yield curve normalized for the first time in months. Despite these positive results, the longer-term trends continue to deteriorate, suggesting there are still very real risks in the economy that should be monitored going forward.