Weekly economic update for January 18, 2022


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


economy
  • The CPI rose 0.5% and core CPI increased 0.6% in December, the Bureau of Labor Statistics reported.
  • Retail sales fell 1.9% in December, according to an advanced report from the Census Bureau.
  • Wholesale sales rose 1.3% in November compared with October, the Census Bureau stated.


Employment
  • Initial jobless claims rose by 23,000 to 230,000 in the week ended January 8, 2022, the Department of Labor reported.


Profits
  • As of January 6, 2022, of the 20 S&P 500 Index companies reporting fourth-quarter earnings, 15 beat analysts’ estimates, according to S&P Dow Jones Indices.


Emotion
  • The NFIB Small Business Optimism Index increased slightly in December.
  • The University of Michigan’s preliminary reading of its index of consumer sentiment fell to 68.8 in January from 70.6 in December.


Europe
  • Eurostat reported euro area industrial production rose 2.3% in November compared with October.
  • Germany’s Federal Statistical Office noted wholesale prices increased 0.2% in December compared with November.


Rates
  • The yield on the 10-year Treasury note traded in a range.


Risks
  • Upward pressure on inflation from multiple fronts (supply chain disruptions, housing costs, and the labor market) could pressure central banks to pull forward their timelines for monetary policy normalization.
  • Declining liquidity and deteriorating financial conditions, combined with high valuations, should lead to a substantial uptick in risk asset volatility.
  • Global leverage, created by pandemic response packages, is at worrisome levels and will eventually need to be paid for.


Go behind the numbers for commentary from Putnam's active investors

Putnam Perspectives


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.