Weekly economic update for October 3, 2022

Weekly economic update for October 3, 2022

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


economy

  • GDP decreased at an annual rate of 0.6% in the second quarter, according to the third estimate from the Bureau of Economic Analysis.
  • Durable goods orders decreased 0.2% in August, the Census Bureau stated in an advance report.
  • New home sales increased 28.8% in August, the Census Bureau reported.

Employment

  • Initial jobless claims fell by 16,000 to 193,000 in the week ended September 24, 2022, the Department of Labor found.

Profits

  • As of September 21, 2022, of the 498 S&P 500 Index companies reporting second-quarter earnings, 372 beat analysts’ estimates, according to S&P Dow Jones Indices.

Emotion

  • The Conference Board Consumer Confidence Index increased in September.

Europe

  • In a flash estimate, Eurostat reported euro area annual inflation is expected to rise to 10.0% in September from 9.1% in August.
  • The European Commission’s Economic Sentiment Indicator for the euro area fell sharply in September.
  • The ifo Business Climate Index for Germany fell in September.

Rates

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

Risks

  • 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.

Go behind the numbers for commentary from Putnam’s active investors

Putnam Perspectives


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.

More in: Macroeconomics