Weekly economic update for December 4, 2023


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


economy

  • Wholesale inventories fell 0.2% in October compared with September, the Census Bureau stated in an advance report.
  • Consumer spending increased 0.2% in October compared with September, according to the Bureau of Economic Analysis.
  • The PCE Price Index rose less than 0.1% in October compared with September, the Bureau of Economic Analysis noted.

Employment

  • Initial jobless claims rose by 7,000 to 218,000 in the week ended November 25, 2023, according to the Department of Labor.

Profits

  • As of November 30, 2023, 82% of S&P 500 Index companies reporting third-quarter earnings beat estimates, according to FactSet.

Emotion

  • The Conference Board Consumer Confidence Index rose in November.

Europe

  • Eurostat reported euro area annual inflation is expected to be 2.4% in November, a drop from 2.9% in October.
  • The European Commission’s Economic Sentiment Indicator improved slightly in November.
  • The GfK Consumer Climate Indicator remained stable in November.

Rates

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

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.