Weekly economic update for September 26, 2022

Weekly economic update for September 26, 2022

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


economy

  • Housing starts increased 12.2% in August compared with July, the Census Bureau stated.
  • Existing home sales slipped 0.4% in August, the National Association of Realtors noted.
  • The Conference Board Leading Economic Index decreased in August.

Employment

  • Initial jobless claims rose by 5,000 to 213,000 in the week ended September 17, 2022, the Department of Labor stated.

Profits

  • As of September 15, 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 European Commission’s Flash Economic Sentiment Indicator for the euro area dropped in September.

Europe

  • Eurostat reported construction production increased 0.3% in July compared with June.
  • Germany’s Federal Statistical Office found producer prices rose 7.9% in August compared with July.

Rates

  • The yield on the 10-year Treasury note rose.
  • The Bank of Japan held rates steady.
  • The Bank of England decided to raise the bank rate by 50 basis points.
  • The Federal Reserve increased the target range for the federal funds rate 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.

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