Highlights of key economic statistics from last week compiled by Putnam Investments.
- The CPI rose 0.5% and core CPI increased 0.6% in December, the Bureau of Labor Statistics reported.
- Retail sales fell 1.9% in December, according to an advanced report from the Census Bureau.
- Wholesale sales rose 1.3% in November compared with October, the Census Bureau stated.
- Initial jobless claims rose by 23,000 to 230,000 in the week ended January 8, 2022, the Department of Labor reported.
- As of January 6, 2022, of the 20 S&P 500 Index companies reporting fourth-quarter earnings, 15 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The NFIB Small Business Optimism Index increased slightly in December.
- The University of Michigan’s preliminary reading of its index of consumer sentiment fell to 68.8 in January from 70.6 in December.
- Eurostat reported euro area industrial production rose 2.3% in November compared with October.
- Germany’s Federal Statistical Office noted wholesale prices increased 0.2% in December compared with November.
- The yield on the 10-year Treasury note traded in a range.
- Upward pressure on inflation from multiple fronts (supply chain disruptions, housing costs, and the labor market) could pressure central banks to pull forward their timelines for monetary policy normalization.
- Declining liquidity and deteriorating financial conditions, combined with high valuations, should lead to a substantial uptick in risk asset volatility.
- Global leverage, created by pandemic response packages, is at worrisome levels and will eventually need to be paid for.
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