Weekly economic update for May 2, 2022

Putnam Investments | May 2, 2022

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

New home sales dropped 8.6% in March, the Census Bureau stated.
GDP growth registered a –1.4% annualized rate in the first quarter, according to the Bureau of Economic Analysis.
Pending home sales fell 1.2% in March compared with February, the National Association of Realtors found.

Initial jobless claims fell by 5,000 to 180,000 in the week ended April 23, 2022, according to the Department of Labor.

As of April 21, 2022, of the 98 S&P 500 Index companies that reported first-quarter earnings, 75 beat analysts’ estimates, according to S&P Dow Jones Indices.

The Conference Board Consumer Confidence Index declined slightly in April.
The University of Michigan’s index of consumer sentiment rose to 65.2 in April from 59.4 in March.

Eurostat reported euro area construction production rose 1.9% in February compared with January.
Euro area annual inflation is expected to rise to 7.5% in April from 7.4% in March, according to Eurostat.
The GfK consumer sentiment index for Germany in April declined to a record low.

The yield on the 10-year Treasury note traded in a range.
The Bank of Japan decided to maintain its current stimulus program and keep short-term interest rates negative.

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, 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.