Gavekal Capital: US Spending Picks Up In November

Friday, December 6, 2013

US Spending Picks Up In November

We highlighted yesterday that spending on services was precariously close to signally a recession in the US (link). The good news is the first data point for the fourth quarter shows spending on services increased by 0.2% month-over-month and is 1.14% higher than it was a year ago. Overall real PCE increased by 0.3% month-over-month.

One potential flag the Fed is sure to be keeping their eye on is the PCE price index. The year-over-year change fell to it's lowest level since 2009 and the core-PCE change fell to it's lowest level in about 2 1/2 years.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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