By the numbers: The economy this week

Update for September 9, 2019

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

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economy

  • The trade deficit declined in July, according to the Census Bureau.
  • Factory orders and durable goods orders both increased in July, the Census Bureau stated.
  • The U.S. Composite PMI Output Index fell to 50.7 in August from 52.6 in July, according to Markit Economics.

employment

  • Initial jobless claims rose by 1,000 to 217,000 in the week ended August 31, 2019, according to the Labor Department.
  • The United States added 130,000 jobs in August and the unemployment rate remained unchanged at 3.7%, the Bureau of Labor Statistics reported.

profits

  • As of August 30, 2019, of the 494 S&P 500 Index companies reporting second-quarter earnings, 363 — or 73.5% — beat analysts’ estimates, according to S&P Dow Jones Indices.

emotion

  • A report from the Institute for Supply Management found that manufacturing activity contracted in August for the first time in three years and observed “a notable decrease in business confidence.”

europe

  • Eurostat reported that industrial producer prices rose 0.2% in the euro area in July.
  • Retail trade declined 0.6% in July, according to Eurostat.
  • The Markit Eurozone Composite PMI Output Index increased to 51.9 in August from 51.5 in July.

rates

  • The yield on the 10-year U.S. Treasury note rose.

risks

  • No resolution to China trade war, or opening a new front with Europe on autos, risks more equity market turmoil.
  • Brexit, Italian debt dynamics, and the re-emergence of populism risk tipping Europe back into recession.
  • Weak stimulus in China thus far is showing little sign of slowing the pace of deceleration.

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.

Your clients should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus containing this and other information for any Putnam fund or product, call Putnam at 1-800-354-4000. Your clients should read the prospectus carefully before investing.