Weekly economic update for February 22, 2022

Weekly economic update for February 22, 2022

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


economy

  • The Producer Price Index for final demand grew 1.0% in January, according to the Bureau of Labor Statistics.
  • Import prices rose 2.0% and export prices increased 2.9% in January, the Bureau of Labor Statistics noted.
  • Housing starts fell 4.1% in January compared with December, the Census Bureau found.

Employment

  • Initial jobless claims rose by 23,000 to 248,000 in the week ended February 12, 2022, according to the Department of Labor.

Profits

  • As of February 11, 2022, of the 72% of S&P 500 Index companies that reported fourth-quarter earnings, 77% recorded earnings per share that exceeded estimates, according to FactSet.

Emotion

  • The ZEW Indicator of Economic Sentiment for Germany increased in February.

Europe

  • Eurostat reported euro area industrial production rose 1.2% in December compared with November.
  • Eurostat stated euro area GDP grew by 0.3% in the fourth quarter.

Rates

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

Risks

  • 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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