Economic and market updates

Economic Update for October 22, 2018

Highlights of news-making events of the past week, from the economy and profits to Europe and interest rates.

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economy

  • In an advance estimate, the Census Bureau reported that retail sales increased 0.1% in September.
  • Housing starts fell 5.3% in September, according to the Census Bureau.
  • The Federal Reserve stated that industrial production advanced 0.3% in September.

employment

  • Initial jobless claims fell by 5,000 to 210,000 in the week ended October 13, 2018, according to the Labor Department.

profits

  • As of October 12, 2018, of the 28 S&P 500 Index companies reporting third-quarter earnings, 25 beat analysts’ estimates, according to S&P Dow Jones Indices.

emotion

  • The ZEW Indicator of Economic Sentiment for Germany fell in October.

europe

  • Annual inflation rose to 2.1% in September from 2.0% in August, according to Eurostat.
  • The euro area posted a trade surplus in August, Eurostat noted.
  • Germany’s Federal Statistical Office noted that wholesale prices jumped 3.5% year over year in September.

rates

  • The yield on the 10-year U.S. Treasury note rose.

risks

  • The strengthening U.S. dollar, widening credit spreads, and higher oil prices are putting pressure on select emerging-market countries.
  • Worries of dwindling global spare capacity in oil production may cause prices to spike, risking an inflation scare.
  • The Fed appears to be on course to invert the yield curve.

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.

Your clients should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus containing this and other information for any Putnam fund or product, call Putnam at 1-800-354-4000. Your clients should read the prospectus carefully before investing.