Highlights of key economic statistics from last week compiled by Putnam Investments.
- Housing starts increased 12.2% in August compared with July, the Census Bureau stated.
- Existing home sales slipped 0.4% in August, the National Association of Realtors noted.
- The Conference Board Leading Economic Index decreased in August.
- Initial jobless claims rose by 5,000 to 213,000 in the week ended September 17, 2022, the Department of Labor stated.
- As of September 15, 2022, of the 498 S&P 500 Index companies reporting second-quarter earnings, 372 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The European Commission’s Flash Economic Sentiment Indicator for the euro area dropped in September.
- Eurostat reported construction production increased 0.3% in July compared with June.
- Germany’s Federal Statistical Office found producer prices rose 7.9% in August compared with July.
- The yield on the 10-year Treasury note rose.
- The Bank of Japan held rates steady.
- The Bank of England decided to raise the bank rate by 50 basis points.
- The Federal Reserve increased 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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