Highlights of key economic statistics from last week compiled by Putnam Investments.
- GDP grew 2.1% in the second quarter, the Bureau of Economic Analysis reported in its final revision.
- Durable goods orders increased 0.2% in August, the Census Bureau stated in an advance report.
- New home sales fell 8.7% in August compared with July, the Census Bureau found.
- Initial jobless claims rose by 2,000 to 204,000 in the week ended September 23, 2023, according to the Department of Labor.
- Corporate profits increased 0.2% at a quarterly rate in the second quarter after decreasing 2.6% in the first quarter, according to the Bureau of Economic Analysis.
- The Conference Board Consumer Confidence Index declined in September.
- The European Commission’s Economic Sentiment Indicator fell slightly in the EU and euro area in September.
- The ifo Business Climate Index for Germany fell slightly in September.
- Germany’s Federal Statistical Office noted the inflation rate is expected to be 4.5% year over year in September, down from 6.1% in August.
- 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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