Weekly economic update for September 18, 2023

Weekly economic update for September 18, 2023

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


economy

  • The CPI rose 0.6% and core CPI increased 0.3% in August, according to the Bureau of Labor Statistics.
  • The Producer Price Index for final demand increased 0.7% in August, the Bureau of Labor Statistics stated.
  • Retail sales increased 0.6% in August, the Census Bureau noted in an advance report.

Employment

  • Initial jobless claims rose by 3,000 to 220,000 in the week ended September 9, 2023, the Department of Labor reported.

Profits

  • As of September 7, 2023, of the 497 S&P 500 Index companies reporting second-quarter earnings, 377 beat analysts’ estimates, according to S&P Dow Jones Indices.

Emotion

  • The NFIB Small Business Optimism Index declined in August.

Europe

  • Eurostat reported euro area industrial production fell 1.1% in July compared with June.
  • The Office for National Statistics noted that GDP is estimated to have fallen 0.5% in July in the United Kingdom.
  • The ZEW Indicator of Economic Sentiment for Germany rose slightly in August but remained at a negative level.

Rates

  • The yield on the 10-year Treasury note traded in a range.
  • The European Central Bank raised three key interest rates by 25 basis points.

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.

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