Highlights of key economic statistics from last week compiled by Putnam Investments.
- The PCE Price Index rose to an annual rate of 4.4% in April, up from 4.2% in March, the Bureau of Economic Analysis found.
- GDP grew 1.3% in the first quarter, according to a second estimate by the Bureau of Economic Analysis.
- New home sales increased 4.1% in April compared with March, the Census Bureau stated.
- Initial jobless claims rose by 4,000 to 229,000 in the week ended May 20, 2023, the Department of Labor stated.
- Corporate profits fell 5.1% in the first quarter after falling 2.0% in the fourth quarter, according to the Bureau of Economic Analysis.
- The European Commission’s Flash Consumer Confidence Indicator remained stable in the euro area in May.
- The HCOB Flash Eurozone Composite PMI Output Index fell to 53.3 in May from 54.1 in April.
- Eurostat reported euro area construction production decreased by 2.4% in March compared with February.
- Germany’s GDP fell by 0.3% in the first quarter compared with the previous quarter, resulting in two consecutive negative quarters of growth, according to the Federal Statistical Office.
- The yield on the 10-year Treasury note rose.
- Deposit flight continues to pressure banks to tighten lending standards, increasing the potential risk of a credit squeeze.
- 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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