Weekly economic update for August 30, 2021

Weekly economic update for August 30, 2021

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


  • The IHS Markit Flash U.S. Composite PMI Output Index dropped to 55.4 in August from 59.9 in July, hitting an 8-month low.
  • GDP grew at an annual rate of 6.6% in the second quarter, the Bureau of Economic Analysis noted in its second estimate.
  • Existing homes sales rose 2.0% in July compared with June, the National Association of Realtors reported.
  • Durable goods orders slipped 0.1% in July, the Census Bureau stated in an advance report.


  • Initial jobless claims rose by 4,000 to 353,000 in the week ended August 21, 2021, the Department of Labor reported.


  • Corporate profits increased 9.2% at a quarterly rate in the second quarter after increasing 5.1% in the first quarter, according to the Bureau of Economic Analysis.
  • As of August 19, 2021, of the 476 S&P 500 Index companies reporting second-quarter earnings, 408 beat analysts’ estimates, according to S&P Dow Jones Indices.


  • The University of Michigan’s index of consumer sentiment fell to 70.3 in August from 81.2 in July.


  • The IHS Markit Flash Eurozone Composite PMI Output Index fell to 59.5 in August from 60.2 in July, hitting a 2-month low.
  • The European Commission’s Flash Consumer Confidence Indicator slipped in August.
  • The ifo Business Climate Index for Germany fell in August.


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


  • Divergent vaccination rollout timelines and virus mutations risk could cause a shift from a synchronized global recovery to a more fractured regional, multispeed recovery.
  • Global leverage, created by pandemic response packages, is at worrisome levels and will eventually need to be paid for.
  • A shift from “just in time” to “just in case” inventory models could exacerbate supply chain concerns.

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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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