Weekly economic update for September 12, 2022

Weekly economic update for September 12, 2022

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


economy

  • The S&P Global U.S. Composite PMI Output Index fell to 44.6 in August from 47.7 in July.
  • The Census Bureau reported the trade deficit decreased in July.

Employment

  • Initial jobless claims fell by 6,000 to 222,000 in the week ended September 3, 2022, the Department of Labor reported.

Profits

  • As of August 31, 2022, of the 492 S&P 500 Index companies reporting second-quarter earnings, 369 beat analysts’ estimates, according to S&P Dow Jones Indices.

Emotion

  • Investor optimism fell in the recent AAII Investor Sentiment Survey as pessimism reached a nine-week high in the week ended September 7, 2022.

Europe

  • Eurostat found euro area GDP grew 0.8% in the second quarter.
  • Eurostat stated euro area retail sales rose 0.3% in July compared with June.
  • Germany’s Federal Statistical Office noted industrial production fell 0.3% in July compared with June.

Rates

  • The yield on the 10-year Treasury note rose.
  • The European Central Bank raised three key interest rates by 75 basis points.

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.

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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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