By the numbers: The economy this week

Update for October 7, 2019

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

economy

  • The Institute for Supply Management reported that manufacturing contracted in September for the second straight month.
  • Construction spending rose 0.1% in August, according to the Census Bureau.
  • The trade deficit widened in August, the Census Bureau stated.

employment

  • Initial jobless claims rose by 4,000 to 219,000 in the week ended September 28, 2019, according to the Department of Labor.
  • The U.S. added 136,000 jobs in September and the unemployment rate fell to 3.5%, the Bureau of Labor Statistics reported.

profits

  • As of September 3, 2019, of the 497 S&P 500 Index companies reporting second-quarter earnings, 366 — or 73.6% — beat analysts’ estimates, according to S&P Dow Jones Indices.

emotion

  • The Conference Board’s Measure of CEO Confidence fell in the third quarter, reaching its lowest level since the first quarter of 2009.

europe

  • Eurostat found that producer prices dropped 0.5% in the euro area in August.
  • Retail trade increased 0.3% in the euro area in August, Eurostat stated.
  • The Eurozone PMI Composite output Index fell to 50.1 in September from 51.9 in August.
  • Euro area annual inflation declined to 0.9% in September from 1.0% in August, Eurostat reported.

rates

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

risks

  • The cumulative effect of tariffs and low corporate confidence will increase pressure on global manufacturing.
  • Brexit, Italian debt dynamics, and a fragile European banking system risk tipping Europe back into recession.
  • Weak stimulus in China thus far is showing little sign of slowing the pace of deceleration.