Weekly economic update for July 24, 2023

Weekly economic update for July 24, 2023

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


economy

  • Retail sales rose 0.2% in June compared with May, according to an advance report from the Census Bureau.
  • Industrial production declined 0.5% in June compared with May for a second straight month the Federal Reserve noted.
  • Housing starts fell 8.0% in June compared with May.

Employment

  • Initial jobless claims fell by 9,000 to 228,000 in the week ended July 15, 2023, according to the Department of Labor.

Profits

  • As of July 14, 2023, of the 6% of S&P 500 Index companies reporting second-quarter earnings, 80% are reporting a positive EPS surprise and 63% reported a positive revenue surprise, according to FactSet.

Emotion

  • The European Commission’s Flash Consumer Confidence Indicator for the euro area improved in July.

Europe

  • Eurostat reported the euro area annual inflation rate declined to 5.5% in June from 6.1% in May.
  • Eurostat found euro area construction production rose by 0.2% in May compared with April.

Rates

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

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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