Weekly economic update for December 12, 2022

Weekly economic update for December 12, 2022

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


economy

  • The Producer Price Index for final demand rose 0.3% in November, the Bureau of Labor Statistics reported.
  • Factory orders increased 1.0% in October, the Census Bureau stated.

Employment

  • Initial jobless claims rose by 4,000 to 230,000 in the week ended December 3, 2022, according to the Department of Labor.

Profits

  • As of November 30, 2022, of the 486 S&P 500 Index companies reporting third-quarter earnings, 335 beat analysts’ estimates, according to S&P Dow Jones Indices.

Emotion

  • The European Central Bank reported consumer expectations about economic growth in the eurozone declined in October.

Europe

  • The S&P Global Eurozone Composite PMI Output Index rose to 47.8 in November from 47.3 in October.
  • Eurostat found euro area retail sales fell 1.8% in October.
  • Germany’s Federal Statistical Office reported factory orders increased 0.8% in October compared with September.

Rates

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

Risks

  • High 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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