Weekly economic update for April 18, 2022

Weekly economic update for April 18, 2022

Putnam Investments | April 18, 2022

Highlights of key economic statistics from last week compiled by Putnam Investments.

economy

  • Retail sales grew 0.5% in March compared with February, the Census Bureau noted in an advance report.
  • The Producer Price Index for final demand increased 1.4% in March, according to the Bureau of Labor Statistics.
  • The CPI rose 1.2% and core CPI increased 0.3% in March, the Bureau of Labor Statistics reported.
Employment

  • Initial jobless claims rose by 18,000 to 185,000 in the week ended April 9, 2022, the Department of Labor reported.
Profits

  • As of April 8, 2022, of the 20 S&P 500 Index companies that reported first-quarter earnings, 15 beat analysts’ estimates, according to S&P Dow Jones Indices.
Emotion

  • The NFIB Small Business Optimism Index declined in March.
  • The University of Michigan’s preliminary reading of the index of consumer sentiment jumped to 65.7 in April from 59.4 in March.
Europe

  • The ZEW Indicator of Economic Sentiment for Germany declined in April.
  • The U.K. Office of National Statistics noted industrial production fell 0.6% in February compared with January.
  • According to the Office of National Statistics, GDP grew by 0.1% in February in the United Kingdom.
Rates

  • The yield on the 10-year Treasury note traded in a range.
  • The European Central Bank held rates steady.
Risks

  • Rising energy prices, worsened by the Russia-Ukraine War, increase the risk of stagflation and recession, even as central banks seek monetary policy normalization.
  • Declining liquidity and deteriorating financial conditions, combined with high valuations, should lead to a substantial uptick in risk asset volatility.
  • Global leverage is at worrisome levels and will eventually need to be paid for, at a time when most developed markets are facing a fiscal drag from the end of post-pandemic stimulus.

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All economic and performance information is historical and does not guarantee future results. The views and opinions expressed are those of Putnam Investments, are subject to change with market conditions, and are not meant as investment advice.

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