Weekly economic update for September 5, 2023

Weekly economic update for September 5, 2023

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


economy

  • Retail inventories rose 0.3% in July compared with June, according to an advance report from the Census Bureau.
  • In its second estimate, the Bureau of Economic Analysis reported GDP grew at an annual rate of 2.1% in the second quarter.

Employment

  • Initial claims fell by 4,000 to 228,000 in the week ended August 26, 2023, the Department of Labor found.
  • The U.S. added 187,000 jobs and the unemployment rate rose to 3.8% in August from 3.5% in July.

Profits

  • Corporate profits decreased at a quarterly rate of 0.4% in the second quarter compared with the previous quarter, according to the Bureau of Economic Analysis.

Emotion

  • The Conference Board Consumer Confidence Index declined in August.

Europe

  • Eurostat reported euro area annual inflation remained stable at 5.3% in August compared with July.
  • The European Commission’s Economic Sentiment Indicator declined in the euro area and the EU in August.
  • The GfK Consumer Climate Indicator dropped heading into September.

Rates

  • The yield on the 10-year Treasury note declined.

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.

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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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