Weekly economic update for December 27, 2022

Weekly economic update for December 27, 2022

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


economy

  • Existing home sales fell 7.7% in November, the National Association of Realtors stated.
  • GDP increased at an annual rate of 3.2% in the third quarter, according to the Bureau of Economic Analysis.
  • The Personal Consumption Expenditures price index rose 0.1% in November compared with October.

Employment

  • Initial jobless claims rose by 2,000 to 216,000 in the week ended December 17, 2022, the Department of Labor found.

Profits

  • Corporate profits fell less than 0.1% in the third quarter after increasing 4.6% in the second quarter, according to the Bureau of Economic Analysis.

Emotion

  • The Conference Board Consumer Confidence Index increased in December.

Europe

  • The European Commission’s Flash Consumer Confidence Indicator for the euro area increased in December.
  • Germany’s Federal Statistical Office noted industrial producer prices dropped 3.9% in November compared with October.

Rates

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

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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