Weekly economic update for September 13, 2021


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


economy
  • The Producer Price Index for final demand increased 0.7% in August, according to the Bureau of Labor Statistics.
  • Consumer credit increased 4.7% in July, the Federal Reserve stated.


Employment
  • Initial jobless claims fell by 35,000 to 310,000 in the week ended September 4, 2021, the Labor Department reported.


Profits
  • In the fourth-largest increase in EPS estimates since 2009, analysts raised the earnings estimates for S&P 500 Index companies by 3.8% during the first two months of the third quarter, according to FactSet.


Emotion
  • The IBD/TIPP Economic Optimism Index dropped in September.


Europe
  • Euro area GDP grew 2.2% in the second quarter, according to Eurostat.
  • The IHS Markit Eurozone Construction PMI dipped to 49.5 in August from 49.8 in July.
  • The ZEW Indicator of Economic Sentiment decreased in September.


Rates
  • The yield on the 10-year Treasury note traded in a range.
  • According to the Federal Open Market Committee’s Beige Book, economic growth “downshifted slightly” in August, due to a pullback in dining out, travel, and tourism.


Risks
  • Divergent vaccination rollout timelines and virus mutations risk could cause a shift from a synchronized global recovery to a more fractured regional, multispeed recovery.
  • Global leverage, created by pandemic response packages, is at worrisome levels and will eventually need to be paid for.
  • A shift from “just in time” to “just in case” inventory models could exacerbate supply chain concerns.


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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.