Weekly economic update for August 29, 2022

Weekly economic update for August 29, 2022

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


  • GDP declined by 0.6% in the second quarter, according to a second estimate by the Bureau of Economic Analysis.
  • New home sales dropped 12.6% in July compared with June, the Census Bureau and the Department of Housing and Urban Development noted.
  • Pending home sales slipped 1.0% in July, the National Association of Realtors reported.


  • Initial jobless claims fell by 2,000 to 243,000 in the week ended August 20, 2022, according to the Department of Labor.


  • As of August 22, 2022, of 478 S&P 500 Index companies reporting second-quarter earnings, 359 beat analysts’ expectations, according to S&P Dow Jones Indices.


  • The European Commission’s Flash Consumer Confidence Indicator for the euro area edged higher but remained at a level below its historic average.


  • The S&P Global Flash Eurozone Composite PMI Output Index slipped to 49.2 in August from 49.9 in July.
  • The S&P Global Flash Germany Composite PMI Output Index dropped to 47.6 in August from 48.1 in July.


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


  • 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, 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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