Weekly economic update for January 3, 2022

Weekly economic update for January 3, 2022

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


economy

  • The trade deficit increased in November, the Census Bureau stated in an advance report.
  • Wholesale inventories rose 1.2% in November compared with October, the Census Bureau found in an advance report.
  • Retail inventories grew 2.0% in November compared with October, according to an advance report from the Census Bureau.

Employment

  • Initial jobless claims fell by 8,000 to 198,000 in the week ended December 25, 2021, the Department of Labor found.

Profits

  • As of December 23, 2021, of the 500 S&P 500 Index companies reporting third-quarter earnings, 401 beat analysts’ estimates, according to S&P Dow Jones Indices.

Emotion

  • The AAII Investor Sentiment Survey showed a bullish sentiment increased by 8.1 percentage points in the week ended December 29, 2021, compared with the previous week.

Europe

  • The European Central Bank could begin raising interest rates in early 2023, Governing Council member Klaas Knot said in an interview.
  • House prices in the United Kingdom rose by 10.4% in December, the fastest pace in 15 years, the Nationwide Building Society reported.

Rates

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

Risks

  • Divergent vaccination rollout timelines and virus mutations risk could cause a shift from a synchronized global recovery to a more fractured regional, multispeed recovery.
  • Global leverage, created by pandemic response packages, is at worrisome levels and will eventually need to be paid for.
  • Upward pressure on inflation from multiple fronts (energy prices, housing costs, and the labor market) could pressure central banks to pull forward their timelines for monetary policy normalization.

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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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