Highlights of key economic statistics from last week compiled by Putnam Investments.
- The Producer Price Index for final demand increased 0.8% in May, the Bureau of Labor Statistics found.
- Retail sales fell 0.3% in May compared with April, the Census Bureau stated.
- Housing starts dropped 14.4% in May compared with April, the Census Bureau reported.
- Initial jobless claims fell by 3,000 to 229,000 in the week ended June 11, 2022, according to the Department of Labor.
- As of June 9, 2022, of the 499 S&P 500 Index companies reporting first-quarter earnings, 384 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The NFIB Small Business Optimism Index fell in May.
- Eurostat reported euro area annual inflation rose to 8.1% in May from 7.4% in April.
- Eurostat noted euro area industrial production rose 0.4% in April compared with March.
- Germany’s Federal Statistical Office stated the CPI increased to 7.9% year over year in May, reaching a record high.
- The yield on the 10-year Treasury note rose.
- The Federal Reserve increased the target range for the federal funds rate by 75 basis points.
- The Bank of England raised the bank rate by 25 basis points to 1.25%.
- Rising energy prices, worsened by the Russia-Ukraine War, increase the risk of stagflation and recession, even as central banks seek monetary policy normalization.
- 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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