Weekly economic update for December 26, 2023

Weekly economic update for December 26, 2023

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


economy

  • Real GDP increased at an annual rate of 4.9% in the third quarter, the Bureau of Economic Analysis reported.
  • Housing starts jumped 14.8% in November compared with October, the Census Bureau stated.
  • Existing home sales edged higher by 0.8% in November, the National Association of Realtors noted.

Employment

  • Initial jobless claims rose by 2,000 to 205,000 in the week ended December 16, 2023, according to the Department of Labor.

Profits

  • Corporate profits increased 3.4% at a quarterly rate in the third quarter after increasing 0.2% in the second quarter, according to the Bureau of Economic Analysis.

Emotion

  • The Conference Board Consumer Confidence Index surged in December.

Europe

  • Eurostat reported the euro area annual inflation rate fell to 2.4% in November from 2.9% in October.
  • The European Commission’s Flash Consumer Confidence Indicator for the euro area
    increased in December.

Rates

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

Risks

  • 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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