Economic and market updates

Economic Update for April 16, 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

  • The CPI declined 0.1% and core CPI rose 0.2% in March, the Bureau of Labor Statistics stated
  • The Producer Price Index for final demand advanced 0.3% in March, the Bureau of Labor Statistics reported
  • Import prices remained stable while export prices rose in March, according to the Bureau of Labor Statistics

employment

  • Initial jobless claims fell by 9,000 to 233,000 in the week ended April 7, 2018, the Labor Department found

profits

  • For the 12-month period ended March 31, 2018, net dividend increases for U.S. stocks rose 36.5%, reaching $45.1 billion, according to S&P Dow Jones Indices

emotion

  • The University of Michigan’s index of consumer sentiment fell to 97.8 in April from 101.4 in March
  • Small business optimism remained high in March. It has been in the survey’s highest 5% for 16 months, the NFIB reported
europe

  • Euro area industrial production fell by 0.8% in February, Eurostat reported
  • The euro area posted a trade surplus in February, Eurostat noted
  • Consumer prices climbed 1.6% in March, according to Germany’s Federal Statistical Office

rates

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

risks

  • China’s nominal GDP growth could begin to decline
  • There is a mismatch between the low-volatility market environment and policy uncertainty
  • Fed tightening measures could potentially contribute to inverting the yield curve in 2018

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.