Highlights of key economic statistics from last week compiled by Putnam Investments.
- Factory orders decreased 1.0% in July, the Census Bureau stated.
- Home prices reported an 18.0% annual gain in June, down from 19.9% in the previous month, according to S&P Dow Jones Indices.
- Initial jobless claims fell by 5,000 to 232,000 in the week ended August 27, 2022, the Department of Labor reported.
- The U.S. added 315,000 jobs and the unemployment rate rose to 3.7% in August from 3.5% in July, the Department of Labor reported.
- As of August 11, 2022, the earnings growth rate for the second quarter for the S&P 500 Index is 6.7%, with six sectors, led by energy, reporting year-over-year growth, according to FactSet.
- The Conference Board Consumer Confidence Index rose in August.
- Eurostat reported euro area annual inflation is expected to climb to 9.1% in August.
- The European Commission’s Economic Sentiment Indicator for the euro area declined in August.
- The S&P Global Eurozone Manufacturing PMI fell to 49.6 in August from 49.8 in July.
- The yield on the 10-year Treasury note rose.
- 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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