Economic and market updates

Economic Update for August 13, 2018

Highlights of news-making events of the past week, from the economy and profits to Europe and interest rates.

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economy

  • Wholesale sales slipped 0.1% in June, the Census Bureau reported.
  • The Producer Price Index for final demand was unchanged in July, the Bureau of Labor Statistics noted.
  • Both the CPI and core CPI increased 0.2% in July, the Bureau of Labor Statistics reported.

employment

  • Initial jobless claims fell by 6,000 to 213,000 in the week ended August 4, 2018, according to the Labor Department.

profits

  • As of July 31, 2018, of the 315 S&P 500 Index companies reporting second-quarter earnings, 253 — or 80.3% — beat analysts’ estimates, according to S&P Dow Jones Indices.

emotion

  • The Bloomberg Consumer Comfort Index rose to 59.3 in the week ended August 5, 2018, from 58.6 in the prior week, marking the highest level since February 2001.

europe

  • Germany’s industrial production fell 0.9% in June, the Federal Statistical Office reported.
  • Factory orders dropped 4.0% in Germany in June, according to the Federal Statistical Office.
  • In the United Kingdom, GDP grew 0.4% in the second quarter, the Office for National Statistics found.

rates

  • The yield on the 10-year U.S. Treasury note fell.

risks

  • The strengthening U.S. dollar, widening credit spreads, and higher oil prices are putting pressure on select emerging market countries.
  • Worries of dwindling global spare capacity in oil production may cause prices to spike, risking an inflation scare.
  • The Fed appears to be on course to invert the yield curve.

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.