Weekly economic update for November 22, 2021


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


economy
  • Retail sales increased 1.7% in October compared with September, according to an advance report from the Census Bureau.
  • Import prices rose 1.2% and export prices increased 1.5% in October, the Bureau of Labor Statistics found.
  • The Federal Reserve reported industrial production rose 1.6% in October.


Employment
  • Initial jobless claims fell by 1,000 to 268,000 in the week ended November 13, 2021, according to the Department of Labor.


Profits
  • As of November 11, 2021, of the 460 S&P 500 Index companies reporting third-quarter earnings, 352 beat analysts’ estimates, according to S&P Dow Jones Indices.


Emotion
  • The NAHB/Wells Fargo Housing Market Index showed builder confidence increased in November.


Europe
  • Eurostat reported the euro area recorded a trade surplus in September.
  • Euro area GDP grew 2.2% in the third quarter, according to Eurostat.
  • Eurostat noted the euro area annual inflation rate rose to 4.1% in October from 3.4% in September.


Rates
  • The yield on the 10-year Treasury note increased.


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.
  • Upward pressure on inflation from multiple fronts (energy prices, housing costs, and the labor market) could pressure central banks to pull forward their timelines for monetary policy normalization.


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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.