Highlights of key economic statistics from last week compiled by Putnam Investments.
- The CPI and core CPI both rose 0.6% in January, the Bureau of Labor Statistics noted.
- Wholesale sales increased 0.2% in December compared with November, the Census Bureau found.
- The Federal Reserve reported consumer credit climbed 5.1% in December.
- Initial jobless claims fell by 16,000 to 223,000 in the week ended February 5, 2022, according to the Department of Labor.
- As of February 4, 2022, of the 275 S&P 500 Index companies reporting fourth-quarter earnings, 213 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The NFIB Small Business Optimism Index decreased in January.
- The University of Michigan’s index of consumer sentiment dropped to 61.7 in February from 67.2 in March.
- Germany’s Federal Statistical Office noted exports rose 0.9% in December compared with November.
- In Germany, industrial production declined 0.3% in December compared with November, the Federal Statistical Office stated.
- The yield on the 10-year Treasury note rose.
- Upward pressure on inflation from multiple fronts (supply chain disruptions, housing costs, and the labor market) could pressure central banks to pull forward their timelines for monetary policy normalization.
- Declining liquidity and deteriorating financial conditions, combined with high valuations, should lead to a substantial uptick in risk asset volatility.
- Global leverage, created by pandemic response packages, is at worrisome levels and will eventually need to be paid for.
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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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