Weekly economic update for August 21, 2023

Weekly economic update for August 21, 2023

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


economy

  • Business inventories were essentially unchanged in June compared with May, the Census Bureau stated.
  • Housing starts rose 3.9% in July compared with June, according to the Census Bureau.
  • Industrial production increased 1.0% in July, the Federal Reserve reported.

Employment

  • Initial jobless claims fell by 11,000 to 239,000 in the week ended August 12, 2023.

Profits

  • As of August 9, 2023, of the 453 S&P 500 Index companies reporting second-quarter earnings, 342 beat analysts’ estimates, according to S&P Dow Jones Indices.

Emotion

  • The ZEW Indicator of Economic Sentiment for Germany recorded a slight increase in August.

Europe

  • Eurostat reported euro area industrial production grew 0.5% in June compared with May.
  • Eurostat found euro area GDP grew 0.3% in the second quarter.
  • Germany’s Federal Statistical Office noted wholesale prices fell 0.2% in July compared with June.

Rates

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

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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