Weekly economic update for October 2, 2023

Weekly economic update for October 2, 2023

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


economy

  • GDP grew 2.1% in the second quarter, the Bureau of Economic Analysis reported in its final revision.
  • Durable goods orders increased 0.2% in August, the Census Bureau stated in an advance report.
  • New home sales fell 8.7% in August compared with July, the Census Bureau found.

Employment

  • Initial jobless claims rose by 2,000 to 204,000 in the week ended September 23, 2023, according to the Department of Labor.

Profits

  • Corporate profits increased 0.2% at a quarterly rate in the second quarter after decreasing 2.6% in the first quarter, according to the Bureau of Economic Analysis.

Emotion

  • The Conference Board Consumer Confidence Index declined in September.

Europe

  • The European Commission’s Economic Sentiment Indicator fell slightly in the EU and euro area in September.
  • The ifo Business Climate Index for Germany fell slightly in September.
  • Germany’s Federal Statistical Office noted the inflation rate is expected to be 4.5% year over year in September, down from 6.1% in August.

Rates

  • The yield on the 10-year Treasury note rose.

Risks

  • Deposit flight continues to pressure banks to tighten lending standards, increasing the potential risk of a credit squeeze.
  • 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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