The summer months are underway, which means that both vacations and midyear check-ins are ahead. As we approach the midpoint of 2018, many of us will take this opportunity to reflect on what we’ve seen so far and what may be ahead for the rest of the year. But we’re not quite there yet! So as we kick off the month of June, we look at some valuable takeaways coming out of recent action in Italy and provide a quick check-in on the U.S. economy.
In U.S. economic news, the big headline was the May jobs report, which was generally positive. The report indicated that job growth may be accelerating, wage growth is increasing, and the unemployment rate is near a 50-year low. Wage growth is not at a level that would alarm the Federal Reserve (Fed), but likely keeps the Fed on track to increase interest rates at its next meeting this month (June 12–13), which is widely anticipated by the markets. We expect this healthy labor market to continue to provide support for the economy and consumer spending.
Overall, we think the global economic backdrop, particularly in the U.S., remains intact. Although the situation in Italy is an ongoing risk worth monitoring, we don’t believe it indicates a change in the trajectory of the global economy. Rest assured that as the days become longer and summer unfolds, we’ll continue to keep a close eye on developments in Italy and around the globe, watching for any potential impacts for investors. Stay tuned next month for a more in-depth look at where the markets and global economy stand at midyear. As always, if you have any questions, please reach out to your financial advisor.