Weekly economic update for November 21, 2022


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


economy
  • The Conference Board Leading Economic Index increased in October.
  • The Producer Price Index for final demand increased 0.2% in October, according to the Bureau of Labor Statistics.
  • Retail sales grew 1.3% in October, according to an advance report from the Census Bureau.


Employment
  • Initial jobless claims fell by 4,000 to 222,000 in the week ended November 12, 2022, the Department of Labor reported.


Profits
  • As of November 9, 2022, of the 452 S&P 500 Index companies reporting third-quarter earnings, 306 beat analysts’ estimates, according to S&P Dow Jones Indices.


Emotion
  • The ZEW Indicator of Economic Sentiment for Germany rose in November but remained at a negative level.


Europe
  • Eurostat reported euro area annual inflation climbed to 10.6% in October from 9.9% in September.
  • Euro area industrial production rose 0.9% in September compared with August, Eurostat found.
  • Eurostat stated euro area GDP grew 0.2% in the third quarter.


Rates
  • The yield on the 10-year Treasury note traded in a range.


Risks
  • High 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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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.