Weekly economic update for December 27, 2021


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


economy
  • GDP grew at an annual rate of 2.3% in the third quarter, the Bureau of Economic Analysis found.
  • The Conference Board Leading Economic Index rose in November.
  • The National Association of Realtors reported existing home sales increased 1.9% in November.


Employment
  • Initial jobless claims totaled 205,000 in the week ended December 18, 2021, unchanged from the previous week, the Department of Labor stated.


Profits
  • Corporate profits increased 3.4% at a quarterly rate in the third quarter, the Bureau of Economic Analysis reported.


Emotion
  • The Conference Board Consumer Confidence Index improved in December.
  • The University of Michigan’s index of consumer sentiment rose to 70.6 in December from 67.4 in November.


Europe
  • The European Commission’s flash consumer confidence indicator decreased in December.
  • The Office for National Statistics noted the United Kingdom’s GDP is estimated to have increased 1.1% in the third quarter.


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


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.
  • Upward pressure on inflation from multiple fronts (energy prices, housing costs, and the labor market) could pressure central banks to pull forward their timelines for monetary policy normalization.


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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.