By the numbers: The economy this week
Update for August 10, 2020
Highlights of key economic statistics from last week compiled by Putnam Investments.
- The Institute for Supply Management reported that manufacturing activity expanded in July.
- Factory orders increased 6.2% in June, the Census Bureau stated.
- The trade deficit decreased in June, according to the Census Bureau.
- Initial jobless claims reached 1,186,000 in the week ended August 1, 2020, the Department of Labor announced.
- The United States added 1.8 million jobs and the unemployment rate dropped to 10.2% in July from 11.1% in June, the Bureau of Labor Statistics found.
- As of July 31, 2020, of 313 S&P 500 Index companies reporting second-quarter earnings, 257 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The IBC/TIPP Economic Optimism Index rose in August, but remained at a level indicating pessimism.
- The Markit Eurozone Composite PMI Output Index climbed to 54.9 in July from 48.5 in June.
- Eurostat reported that euro area industrial producer prices rose 0.7% in June, compared with May.
- Germany’s Federal Statistical Office noted that factory orders surged 27.9% in June, compared with May.
- The yield on the 10-year Treasury note traded in a narrow range.
- The Bank of England held rates steady.
- Many countries around the world are now in recession as a result of the "sudden stop" induced by governments to contain the spread of COVID-19.
- The liquidity-fueled recovery in risk assets will at some point need to resolve with the pace of recovery in fundamentals, and the latter may happen over a longer horizon than hoped.
- The possibility of a "blue wave" in the U.S. November election, with Democrats winning control of the House, Senate, and Presidency, could mean a future rollback of corporate tax cuts.
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.
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