Weekly economic update for April 4, 2022

Weekly economic update for April 4, 2022

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


economy

  • GDP grew at an annual rate of 6.9% in the fourth quarter, the Bureau of Economic Analysis reported.
  • The trade deficit narrowed in February, the Census Bureau found in an advance report.
  • Wholesale inventories grew 2.1% in February, according to an advance report from the Census Bureau.

Employment

  • Initial jobless claims rose by 14,000 to 202,000 in the week ended March 26, 2022, the Department of Labor found.
  • The U.S. added 431,000 jobs and the unemployment rate declined to 3.6% in March from 3.8% in February, the Bureau of Labor Statistics stated.

Profits

  • As of March 24, 2022, of the 13 S&P 500 Index companies that reported first-quarter earnings, 9 beat analysts’ estimates, according to S&P Dow Jones Indices.
  • Corporate profits rose 0.7% at a quarterly rate in the fourth quarter after increasing 3.4% in the third quarter, according to the Bureau of Economic Analysis.

Emotion

  • The Conference Board Consumer Confidence Index rose slightly in March.

Europe

  • Eurostat reported euro area annual inflation is expected to rise to 7.5% in March from 5.9% in February.
  • The European Commission’s Economic Sentiment Indicator plunged in March.
  • Germany’s Federal Statistical Office reported the inflation rate is expected to rise 2.5% in March compared with February.

Rates

  • The yield on the 10-year Treasury note fell.

Risks

  • Rising energy prices, worsened by the Russia-Ukraine crisis, 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.

Go behind the numbers for commentary from Putnam’s active investors

Putnam Perspectives


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.

More in: Macroeconomics