Highlights of key economic statistics from last week compiled by Putnam Investments.
- The Producer Price Index for final demand increased 0.8% in February, according to the Bureau of Labor Statistics.
- Housing starts jumped 6.8% in February compared with January, the Census Bureau stated.
- Retails sales increased 0.3% in February compared with January, the Census Bureau noted.
- Initial jobless claims fell by 15,000 to 214,000 in the week ended March 12, 2022, the Department of Labor reported.
- As of March 11, 2022, of the 497 S&P 500 Index companies that reported fourth-quarter earnings, 377 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The ZEW Indicator of Economic Sentiment for Germany fell in March, marking its biggest decline since the survey began.
- Germany’s Federal Statistical Office found wholesale prices increased 1.7% in February compared with January.
- Eurostat reported euro area industrial production remained stable in January.
- The yield on the 10-year Treasury note rose.
- The Bank of England decided to increase the bank rate by 0.25 percentage points to 0.75%.
- The Federal Reserve raised the target range of the federal funds rate by 0.25 percentage points and noted the bank “anticipates that ongoing increases in the target range will be appropriate.”
- Rising energy prices, worsened by the Russia-Ukraine crisis, 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, should lead 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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