Weekly economic update for August 7, 2023

Weekly economic update for August 7, 2023

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


  • Construction spending rose 0.5% in June compared with May, the Census Bureau noted.
  • Factory orders increased 2.3% in June, according to the Census Bureau.


  • The U.S. added 187,000 jobs and the unemployment rate declined to 3.5% in July from 3.6% in June, according to the Department of Labor.
  • Initial jobless claims rose by 6,000 to 227,000 in the week ended July 29, 2023, the Department of Labor found.


  • As of August 2, 2023, of the 384 S&P 500 Index companies reporting second-quarter earnings, 296 beat analysts’ estimates, according to S&P Dow Jones Indices.


  • In the AAII Investor Sentiment Survey ended August 2, 2023, a bullish sentiment — the view that the price of stocks would rise in the next six months — increased, while a bearish view declined from the previous week.


  • According to a flash estimate by Eurostat, euro area annual inflation is expected to fall to 5.3% in July, down from 5.5% in June.
  • Eurostat reported in a flash estimate that euro area GDP grew 0.3% in the second quarter.
  • Euro area industrial producer prices fell by 0.4% in June compared with May, Eurostat stated.


  • The yield on the 10-year Treasury note rose.
  • The Bank of England raised its bank rate by 25 basis points.


  • 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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