Highlights of key economic statistics from last week compiled by Putnam Investments.
- GDP decreased at an annual rate of 0.9% in the second quarter, the Bureau of Economic Analysis reported.
- New home sales dropped 8.1% in June compared with May, the Census Bureau found.
- Durable goods orders increased 1.9% in June, the Census Bureau stated in an advance report.
- Initial jobless claims fell by 5,000 to 256,000 in the week ended July 23, 2022, the Department of Labor found.
- As of July 22, 2022, of the 103 S&P 500 Index companies reporting second-quarter earnings, 76 beat analysts’ expectations, according to S&P Dow Jones Indices.
- The Conference Board Consumer Confidence Index declined in July.
- The European Commission’s Economic Sentiment Indicator plunged in July.
- Euro area GDP increased 0.7% in the second quarter, according to a flash report from Eurostat.
- In a flash estimate, Eurostat noted euro area annual inflation is expected to rise to 8.9% in July from 8.6% in June.
- The yield on the 10-year Treasury note declined.
- The Federal Reserve raised the target range for the federal funds rate by 75 basis points.
- 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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