By the numbers: The economy this week

Update for June 14, 2021

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

economy

  • The CPI rose 0.6% and core CPI increased 0.7% in May, according to the Bureau of Labor Statistics.
  • Wholesale inventories grew 0.8% in April compared with March, the Census Bureau stated.

employment

  • Initial jobless claims fell to 376,000 in the week ended June 5, 2021, from 385,000 in the previous week, the Labor Department reported.

profits

  • As of June 2, 2021, of the 494 S&P 500 Index companies reporting first-quarter earnings, 422 beat analysts’ expectations, according to S&P Dow Jones Indices.

emotion

  • The NFIB Small Business Optimism Index slipped in May.
  • The University of Michigan’s index of consumer sentiment rose to 86.4 in June from 82.9 in May.

europe

  • Euro area GDP fell by 0.3% in the first quarter compared with the previous quarter, according to Eurostat.
  • Germany’s Federal Statistical Office reported that industrial production declined 1.0% in April compared with March.
  • Germany’s factory orders slipped 0.2% in April compared with March, the Federal Statistical Office noted.

rates

  • The yield on the 10-year Treasury note declined.
  • The European Central Bank decided to maintain its current monetary policy.

risks

  • Divergent vaccination rollout timelines and virus mutations risk could cause a shift from a synchronized global recovery to a more fractured regional, multispeed recovery.
  • Global leverage, created by pandemic response packages, is at worrisome levels and will eventually need to be paid for.
  • Pandemic and financial repression policies have exacerbated global wealth inequality.

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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.