By the numbers: The economy this week

Update for June 10, 2019

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

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economy

  • The Markit Composite PMI Output Index slipped to 50.9 in May from 53.0 in April.
  • The trade deficit declined in April, according to the Census Bureau.
  • Factory orders decreased 0.8% in April, the Census Bureau noted.
  • Durable goods orders fell 2.1% in April, the Census Bureau stated.

employment

  • For the week ended June 1, 2019, initial jobless claims remained unchanged from the previous week at 218,000, according to the Labor Department.
  • The U.S. added 75,000 jobs in May and the unemployment rate remained unchanged at 3.6%, the Bureau of Labor Statistics reported.

profits

  • As of May 31, 2019, of the 490 S&P 500 Index companies reporting first-quarter earnings, 357 — or 72.9% — beat analysts’ estimates, according to S&P Dow Jones Indices.

emotion

  • Chief executive officers are “highly confident” in the growth prospects in domestic and global economies over the next three years, according to a KPMG survey.

europe

  • The Markit Eurozone Composite PMI Output Index rose to 51.8 in May from 51.5 in April.
  • In a flash estimate, Eurostat reported that euro area annual inflation dropped to 1.2% in May from 1.7% in April.
  • Eurostat noted that retail trade fell by 0.4% in the euro area in April.
  • Euro area GDP grew 0.4% in the first quarter, Eurostat stated.

rates

  • The yield on the 10-year U.S. Treasury note traded in a narrow range.
  • The European Central Bank decided to hold rates steady and indicated they would maintain the current benchmark rate through the first half of 2020.

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.

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