Weekly economic update for October 18, 2021


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


economy
  • The CPI rose 0.4% and core CPI increased 0.2% in September, the Bureau of Labor Statistics found.
  • The Producer Price Index for final demand climbed 0.5% in September, the Bureau of Labor Statistics stated.


Employment
  • Initial jobless claims fell by 36,000 to 293,000 in the week ended October 9, 2021, the Department of Labor stated.


Profits
  • As of October 7, 2021, of the 21 S&P 500 Index companies reporting third-quarter earnings, 15 beat analysts’ estimates, according to S&P Dow Jones Indices.


Emotion
  • The University of Michigan’s index of consumer sentiment fell to 71.4 in October from 72.8 in September.
  • The NFIB Small Business Optimism Index slipped in September.


Europe
  • The ZEW Indicator of Economic Sentiment decreased in October.
  • Germany’s wholesale prices rose 0.8% in September compared with August, according to the Federal Statistical Office.
  • Euro area industrial production fell 1.6% in August compared with July, Eurostat reported.


Rates
  • The yield on the 10-year Treasury note declined.


Risks
  • Divergent vaccination rollout timelines and virus mutations risk could cause a shift from a synchronized global recovery to a more fractured regional, multispeed recovery.
  • Global leverage, created by pandemic response packages, is at worrisome levels and will eventually need to be paid for.
  • A shift from “just in time” to “just in case” inventory models could exacerbate supply chain concerns.


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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.