By the numbers: The economy this week

Update for June 24, 2019

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

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economy

  • The Conference Board Leading Economic Index remained unchanged in May.
  • Housing starts fell by 0.9% in May, according to the Census Bureau and the Department of Housing and Urban Development.
  • Existing home sales jumped 2.5% in May, the National Association of Realtors stated.

employment

  • For the week ended June 15, 2019, initial jobless claims fell by 6,000 to 216,000, according to the Labor Department.

profits

  • As of June 13, 2019, of the 500 S&P 500 Index companies reporting first-quarter earnings, 368 — or 73.6% — beat analysts’ estimates, according to S&P Dow Jones Indices.

emotion

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

europe

  • Eurostat reported that annual inflation fell to 1.2% in May from 1.7% in April.
  • Germany’s Federal Statistical Office noted that producer prices jumped 1.9% year over year in May.
  • The United Kingdom’s Office for National Statistics noted that annual inflation dropped to 1.9% in May from 2.0% in April.
  • Euro area construction output declined 0.8% in April, Eurostat reported.

rates

  • The yield on the 10-year U.S. Treasury note declined.
  • The Federal Reserve held rates steady, indicated they would continue to monitor incoming data, and "will act as appropriate to maintain the expansion."
  • The Bank of Japan maintained the current interest rates.
  • The Bank of England maintained the current bank rate at 0.75%.

risks

  • No resolution to China trade war, or opening a new front with Europe on autos, risks more equity market turmoil.
  • Brexit, Italian debt dynamics, and the re-emergence of populism risk tipping Europe back into recession.
  • Weak stimulus in China thus far is showing little sign of slowing the pace of deceleration.

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.