Weekly economic update for August 14, 2023

Weekly economic update for August 14, 2023

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


economy

  • The CPI and core CPI both rose 0.2% in July, the Bureau of Labor Statistics reported.
  • The trade deficit narrowed in June, the Census Bureau found.
  • Wholesale sales fell 0.7% in June, according to the Census Bureau.

Employment

  • Initial jobless claims rose by 21,000 to 248,000 in the week ended August 5, 2023.

Profits

  • As of August 4, 2023, 84% of S&P 500 Index companies have reported second-quarter earnings. Of those, 79% have reported actual EPS above estimates, according to FactSet.

Emotion

  • The NFIB Small Business Optimism Index increased in July.

Europe

  • In Germany, industrial production fell 1.5% in June compared with May, the Federal Statistical Office noted.
  • Germany’s Federal Statistical Office found the inflation rate rose 0.3% in July compared with June.

Rates

  • The yield on the 10-year Treasury note traded in a range.

Risks

  • Deposit flight continues to pressure banks to tighten lending standards, increasing the potential risk of a credit squeeze.
  • Declining liquidity and deteriorating financial conditions, combined with high valuations, are contributing 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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