Highlights of key economic statistics from last week compiled by Putnam Investments.
- The trade deficit narrowed in August, the Census Bureau stated.
- Construction spending fell 0.7% in August compared with July, the Census Bureau found.
- Initial jobless claims rose by 29,000 to 219,000 in the week ended October 1, 2022, the Department of Labor found.
- The U.S. added 263,000 jobs and the unemployment rate fell to 3.5% in September from 3.7% in August, according to the Bureau of Labor Statistics.
- As of September 30, 2022, of the 499 S&P 500 Index companies reporting second-quarter earnings, 372 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The AAII Investor Sentiment Survey as of October 5, 2022, reported bullish sentiment gained 3.9 percentage points and a bearish outlook fell by 6 percentage points compared with the previous week.
- Eurostat reported euro area industrial producer prices rose by 5.0% in August compared with July.
- Euro area retail sales fell 0.3% in August compared with July, Eurostat stated.
- Germany’s Federal Statistical Office noted factory orders fell 2.4% in August compared with July.
- The yield on the 10-year Treasury note traded in a wide range.
- High 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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