Highlights of key economic statistics from last week compiled by Putnam Investments.
- The CPI rose 0.6% and core CPI increased 0.3% in August, according to the Bureau of Labor Statistics.
- The Producer Price Index for final demand increased 0.7% in August, the Bureau of Labor Statistics stated.
- Retail sales increased 0.6% in August, the Census Bureau noted in an advance report.
- Initial jobless claims rose by 3,000 to 220,000 in the week ended September 9, 2023, the Department of Labor reported.
- As of September 7, 2023, of the 497 S&P 500 Index companies reporting second-quarter earnings, 377 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The NFIB Small Business Optimism Index declined in August.
- Eurostat reported euro area industrial production fell 1.1% in July compared with June.
- The Office for National Statistics noted that GDP is estimated to have fallen 0.5% in July in the United Kingdom.
- The ZEW Indicator of Economic Sentiment for Germany rose slightly in August but remained at a negative level.
- The yield on the 10-year Treasury note traded in a range.
- The European Central Bank raised three key interest rates by 25 basis points.
- 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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