Highlights of key economic statistics from last week compiled by Putnam Investments.
- The Conference Board Leading Economic Index declined in December.
- GDP grew at an annual rate of 2.9% in the fourth quarter, the Bureau of Economic Analysis found in an advance estimate.
- Durable goods orders increased 5.6% in December, the Census Bureau reported.
- Initial jobless claims fell by 6,000 to 186,000 in the week ended January 21, 2023, the Department of Labor reported.
- As of January 20, 2023, of the 55 S&P 500 Index companies reporting fourth-quarter earnings, 39 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The European Commission’s Flash Consumer Confidence Indicator for the euro area improved in January.
- The S&P Global Flash Eurozone Composite PMI Output Index rose to 50.2 in January from 49.3 in December.
- The ifo Business Climate Index for Germany climbed in January.
- The yield on the 10-year Treasury note traded in a range.
- 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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