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Submitted URL: https://firstcitixensuser.mtsber.com/
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Making Sense: In Brief

The week ahead for markets and the economy

Phil: Last week, markets moved sharply as investors consider the Fed's decision
to hold the federal funds rate steady, along with fresh forecast from FOMC
members. Let's now discuss what to watch over the next 2 weeks.

The week of the 18th is a busy one. Housing will be in focus with the release of
housing starts on Tuesday, existing home sales on Wednesday and new home sales
on Friday. The housing market continues to suffer from limited home supply,
which has hurt existing home sales but helps us support new housing starts.

November's personal income and spending report is released on Friday. Consumer
spending is expected to continue to grow, albeit at a slower pace than a couple
months ago. The consumer is critical to US economic growth—and thanks to the
resilient labor market, the consumer continues to spend.

This report also includes the Federal Reserve's preferred inflation measure, the
PCE deflator. The deflator is expected to show further progress on the inflation
front following to a 2.8% annualized pace from 3.0% in the prior month.

Looking ahead to the shortened trading week following the Christmas holiday, it
will be a fairly quiet one on the data front, but we will have an eye on the
Case-Shiller home price index. Residential prices have remained resilient,
thanks to limited home supply. In the most recent reading, the National Home
Price Index posted a 3.9% year-on-year gain.

So items to watch. One, housing starts and sales data. Two, personal income and
spending. Three, home price data.

Making Sense In Brief Outro Slide

Brent Ciliano

CFA | SVP, Chief Investment Officer

Capital Management Group | First Citizens Bank

8510 Colonnade Center Drive | Raleigh, NC 27615

brent.ciliano@firstcitizens.com | 919-716-2650

Phillip Neuhart SVP, Director of Market and Economic Research

Capital Management Group | First Citizens Bank

8510 Colonnade Center Drive | Raleigh, NC 27615

phillip.neuhart@firstcitizens.com | 919-716-2403

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Citizens Asset Management, Inc., an SEC-registered investment advisor.

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