Weekly economic update for November 27, 2023


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


economy

  • Existing home sales fell 4.1% in October, the National Association of Realtors found.
  • The Conference Board Leading Economic Index fell in October.

Employment

  • Initial jobless claims fell by 24,000 to 209,000 in the week ended November 18, 2023, the Department of Labor reported.

Profits

  • As of November 20, 2023, of the 478 S&P 500 Index companies reporting third-quarter earnings, 382 beat analysts’ estimates, according to S&P Dow Jones Indices.

Emotion

  • The NFIB Small Business Optimism Index decreased in October.

Europe

  • The European Commission’s Flash Consumer Confidence Indicator rose in the eurozone and euro area in November.
  • Germany’s Federal Statistical Office noted industrial producer prices slipped 0.1% in October compared with September.
  • Eurostat found euro area construction production rose by 0.4% in September compared with August.

Rates

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

Risks

  • Deposit flight continues to pressure banks to tighten lending standards, increasing the potential risk of a credit squeeze.
  • 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.