Highlights of key economic statistics from last week compiled by Putnam Investments.
- GDP decreased at an annual rate of 1.5% in the first quarter, according to the second estimate by the Bureau of Economic Analysis.
- Durable goods orders increased 0.4% in April, the Census Bureau stated.
- Wholesale inventories rose 2.1% in April, the Census Bureau noted in an advance report.
- The PCE Price Index rose 6.3% year over year in April, the Bureau of Economic Analysis stated.
- Initial jobless claims fell by 8,000 to 210,000 in the week ended May 21, 2022, the Department of Labor reported.
- As of May 19, 2022, of the 475 S&P 500 Index companies reporting first-quarter earnings, 366 beat analysts’ estimates, according to S&P Dow Jones Indices.
- Corporate profits decreased 2.3% in the first quarter after increasing 0.7% at a quarterly rate in the fourth quarter, according to the Bureau of Economic Analysis.
- The University of Michigan’s index of consumer sentiment fell to 58.4 in May from 65.2 in April.
- The S&P Global Flash Eurozone Composite PMI Output dropped to 54.9 in May from 55.8 in April.
- The GfK Consumer Climate Study improved slightly in May, but sentiment remains near an all-time low.
- The ifo Business Climate Index for Germany rose in May.
- The yield on the 10-year Treasury note declined.
- The Federal Open Market Committee’s May meeting minutes noted: “Most participants judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings.”
- 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.
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