Weekly economic update for June 6, 2022

Putnam Investments | June 6, 2022

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

Construction spending increased 0.2% in April compared with March, the Census Bureau stated.
Factory orders grew 0.3% in April, according to the Census Bureau.
Durable goods orders increased 0.5% in April, the Census Bureau noted.

Initial jobless claims fell by 11,000 to 200,000 in the week ended May 28, 2022, the Labor Department noted.
The U.S. added 390,000 jobs and the unemployment rate remained unchanged at 3.6% in May, the Bureau of Labor Statistics reported.

As of May 31, 2022, of the 489 S&P 500 Index companies reporting first-quarter earnings, 377 beat analysts’ estimates, according to S&P Dow Jones Indices.

The Conference Board Consumer Confidence Index declined slightly in May.

Eurostat reported euro area annual inflation is expected to rise to 8.1% in May from 7.4% in April.
The European Commission’s Economic Sentiment Indicator for the euro area decreased slightly in May.
Eurostat found euro area industrial prices rose 1.2% in April compared with March.

The yield on the 10-year Treasury note rose.
All 12 Federal Reserve districts reported continued economic growth in May, the Federal Reserve reported in its Beige Book.

Rising energy prices, worsened by the Russia-Ukraine War, increase the risk of stagflation and recession, even as central banks seek monetary policy normalization.
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.