Weekly economic update for July 17, 2023

Weekly economic update for July 17, 2023

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


economy

  • Both the CPI and core CPI increased 0.2% in June, the Bureau of Labor Statistics reported.
  • The Producer Price Index for final demand increased 0.1% in June, the Bureau of Labor Statistics noted.
  • Wholesale inventories were unchanged in May compared with April, the Census Bureau stated.

Employment

  • Initial jobless claims fell by 12,000 to 237,000 in the week ended July 8, 2023, according to the Department of Labor.

Profits

  • As of July 6, 2023, of the 18 S&P 500 Index companies reporting second-quarter earnings, 13 beat analysts’ earnings estimates, according to S&P Dow Jones Indices.

Emotion

  • The NFIB Small Business Optimism Index increased in June.

Europe

  • Industrial production rose 0.2% in the euro area in May compared with April, Eurostat reported.
  • The ZEW Indicator of Economic Sentiment for Germany decreased in July.
  • Germany’s Federal Statistical Office found the CPI increased 0.3% in June compared with May.

Rates

  • The yield on the 10-year Treasury note declined.

Risks

  • Deposit flight continues to pressure banks to tighten lending standards, increasing the potential risk of a credit squeeze.
  • 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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