Weekly economic update for February 21, 2023

Weekly economic update for February 21, 2023

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


economy

  • The CPI rose 0.5% and core CPI increased 0.4% in January, the Bureau of Labor Statistics reported.
  • Retail sales grew 3.0% in January compared with December, the Census Bureau stated in an advance report.
  • The Producer Price Index for final demand increased 0.7% in January, the Bureau of Labor Statistics found.

Employment

  • Initial jobless claims fell by 1,000 to 194,000 in the week ended February 11, 2023, according to the Department of Labor.

Profits

  • As of February 9, 2023, of the 342 S&P 500 Index companies reporting fourth-quarter earnings, 233 beat analysts’ estimates, according to S&P Dow Jones Indices.

Emotion

  • The NFIB Small Business Optimism Index rose in January.

Europe

  • Eurostat reported euro area industrial production fell 1.1% in December compared with November.
  • Euro area GDP grew by 0.1% in the fourth quarter, according to Eurostat.

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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