Weekly economic update for September 25, 2023

Weekly economic update for September 25, 2023

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


economy

  • The Conference Board Leading Economic Index declined 0.4% in August.
  • Housing starts dropped 11.3% in August compared with July, the Census Bureau noted.
  • Existing home sales fell 0.7% in August, according to the National Association of Realtors.

Employment

  • Initial jobless claims fell by 20,000 to 201,000 in the week ended September 16, 2023.

Profits

  • As of September 20, 2023, of the 499 S&P 500 Index companies reporting second-quarter earnings, 379 beat analysts’ estimates, according to S&P Dow Jones Indices.

Emotion

  • The European Commission’s Flash Consumer Confidence Indicator for the euro area and the eurozone decreased in September.

Europe

  • Eurostat reported euro area construction output increased 0.8% in July compared with June.
  • Germany’s Federal Statistical Office noted producer prices increased 0.3% in August compared with July.

Rates

  • The yield on the 10-year Treasury note increased.
  • The Federal Reserve held rates steady.
  • The Bank of England voted to maintain its current bank rate.
  • The Bank of Japan decided to maintain its current monetary easing policy.

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