Highlights of key economic statistics from last week compiled by Putnam Investments.
- Construction spending fell 0.4% in December compared with November, the Census Bureau stated.
- Initial jobless claims fell by 3,000 to 183,000 in the week ended January 28, 2023, the Department of Labor found.
- The U.S. added 517,000 jobs and the unemployment rate fell to 3.4% in January from 3.5% in December, according to the Bureau of Labor Statistics.
- As of January 31, 2023, of the 170 S&P 500 Index companies reporting fourth-quarter earnings, 119 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The Conference Board Consumer Confidence Index declined in January.
- Eurostat found euro area GDP grew 0.1% in the fourth quarter.
- The European Commission’s Economic Sentiment Indicator rose in the euro area in January.
- Eurostat reported euro area annual inflation is expected to fall to 8.5% in January from 9.2% in December.
- The yield on the 10-year Treasury note traded in a wide range.
- The Federal Reserve raised the target range for the federal funds rate by 25 basis points.
- The European Central Bank decided to increase its key interest rates by 50 basis points.
- The Bank of England raised its bank rate by 50 basis points.
- High energy prices, worsened by the Russia-Ukraine War, increase the risk of stagflation and recession, even as central banks seek monetary policy normalization.
- Declining liquidity and deteriorating financial conditions, combined with high valuations, are contributing to a substantial uptick in risk asset volatility.
- Global leverage is at worrisome levels and will eventually need to be paid for, at a time when most developed markets are facing a fiscal drag from the end of post-pandemic stimulus.
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