Highlights of key economic statistics from last week compiled by Putnam Investments.
- GDP grew at an annual rate of 6.9% in the fourth quarter, according to the Bureau of Economic Analysis.
- The IHS Markit Flash U.S. Composite PMI Output Index fell to 50.8 in January from 57.0 in December.
- Durable goods orders fell 0.9% in December, the Census Bureau stated in an advance report.
- Initial claims fell by 30,000 to 260,000 in the week ended January 22, 2022, the Department of Labor reported.
- As of January 21, 2022, of the 64 S&P 500 Index companies reporting fourth-quarter earnings, 51 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The Conference Board Consumer Confidence Index fell in January.
- The University of Michigan’s index of consumer sentiment fell to 67.2 in January from 70.6 in December.
- The IHS Markit Flash Eurozone Composite PMI Output Index dropped to 52.4 in January from 53.3 in December.
- The ifo Business Climate Index for Germany improved in January.
- The yield on the 10-year Treasury note rose.
- The Federal Open Market Committee noted that “the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.”
- 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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