Weekly economic update for June 26, 2023

Weekly economic update for June 26, 2023

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


economy

  • Housing starts jumped 21.7% in May compared with April, the Census Bureau stated.
  • Existing home sales grew 0.2% in May, the National Association of Realtors found.
  • The Conference Board Leading Economic Index declined in May.

Employment

  • Initial jobless claims totaled 264,000 in the week ended June 17, unchanged from the previous week, according to the Department of Labor.

Profits

  • As of June 13, 2023, of the 499 S&P 500 Index companies reporting first-quarter earnings, 382 beat analysts’ estimates, according to S&P Dow Jones Indices.

Emotion

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

Europe

  • Eurostat found euro area construction production fell by 0.4% in April compared with March.
  • Germany’s Federal Statistical Office noted producer prices fell 1.4% in May compared with April.

Rates

  • The Bank of England increased the bank rate by 50 basis points.
  • 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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