Weekly economic update for December 20, 2021

Weekly economic update for December 20, 2021

Putnam Investments | December 20, 2021

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

economy

  • The Producer Price Index for final demand advanced 0.8% in November compared with October, according to the Bureau of Labor Statistics.
  • Retail sales increased 0.3% in November, the Census Bureau stated in an advance report.
  • Business inventories rose 1.2% in October compared with September.
Employment

  • Initial claims rose by 18,000 to 206,000 in the week ended December 11, 2021, the Department of Labor stated.
Profits

  • As of December 8, 2021, of the 498 S&P 500 Index companies reporting third-quarter earnings, 400 beat analysts’ estimates, according to S&P Dow Jones Indices.
Emotion

  • The NFIB Small Business Optimism Index rose slightly in November.
Europe

  • Euro area industrial production grew 1.1% in October compared with September, Eurostat reported.
  • Germany’s Federal Statistical Office noted wholesale prices rose 1.3% in November compared with October.
Rates

  • The yield on the 10-year Treasury note traded in a narrow range.
  • The Federal Reserve announced it would further taper its economic stimulus starting in January by reducing its monthly asset purchases.
  • The European Central Bank held rates steady.
  • The Bank of England raised the bank rate to 0.25%.
Risks

  • 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.
  • Upward pressure on inflation from multiple fronts (energy prices, housing costs, and the labor market) could pressure central banks to pull forward their timelines for monetary policy normalization.

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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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