Weekly economic update

Economic Update for September 17, 2018   |   Download PDF

Highlights of news-making events of the past week, from the economy and profits to Europe and interest rates.

economy

  • The CPI rose 0.2% and core CPI increased 0.1% in August, the Bureau of Labor Statistics reported.
  • The Producer Price Index declined 0.1% in August, the Bureau of Labor Statistics noted.
  • Wholesale sales remained unchanged in July, the Census Bureau noted.

employment

  • Initial jobless claims decreased by 1,000 to 204,000 in the week ended September 8, 2018, according to the Labor Department.

profits

  • As of September 6, 2018, of the 499 S&P 500 Index companies reporting second-quarter earnings, 398 — or 79.7% — beat analysts’ estimates, according to S&P Dow Jones Indices.

emotion

  • The University of Michigan’s preliminary index of consumer sentiment rose to 100.8 in September from 96.2 in August.
  • The NFIB Small Business Optimism Index jumped to a new record in August.

europe

  • Eurostat reported that industrial production fell 0.8% in July in the euro area.
  • The ZEW Indicator of Economic Sentiment for Germany increased in September.
  • In Germany, the CPI rose 2.0% year over year in August, the Federal Statistical Office reported.

rates

  • The yield on the 10-year U.S. Treasury note increased.
  • Three of the Federal Reserve’s 12 districts reported weaker growth in August, according to the Beige Book report.
  • The Bank of England held rates steady.
  • The European Central Bank maintained the current bank rate.

risks

  • The strengthening U.S. dollar, widening credit spreads, and higher oil prices are putting pressure on select emerging-market countries.
  • Worries of dwindling global spare capacity in oil production may cause prices to spike, risking an inflation scare.
  • The Fed appears to be on course to invert the yield curve.

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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.