Highlights of key economic statistics from last week compiled by Putnam Investments.
- GDP grew at an annual rate of 2.6% in the third quarter, according to the Bureau of Economic Analysis.
- The trade deficit widened in September, the Census Bureau reported.
- New home sales dropped 10.9% in September compared with August, the Census Bureau and the Department of Housing and Urban Development stated.
- Initial jobless claims grew by 3,000 to 217,000 in the week ended October 22, 2022, the Labor Department noted.
- As of October 20, 2022, of the 98 S&P 500 Index companies reporting third-quarter earnings, 73 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The Conference Board Consumer Confidence Index declined in October.
- The S&P Global Flash Eurozone PMI Composite Output Index fell to 47.1 in October from 48.1 in September.
- The ifo Business Climate Index for Germany declined in October.
- The yield on the 10-year Treasury note declined.
- The European Central Bank decided to raise its key interest rates by 75 basis points.
- The Bank of Japan held rates steady.
- 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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