Weekly economic update for December 5, 2022


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


economy
  • The trade deficit increased in October, according to an advance report from the Census Bureau.
  • GDP grew at an annual rate of 2.9% in the third quarter, the Bureau of Economic Analysis reported in its second estimate.


Employment
  • Initial jobless claims fell by 16,000 to 225,000 in the week ended November 26, 2022, according to the Department of Labor.
  • The United States added 263,000 jobs and the unemployment rate remained unchanged at 3.7% in November, the Bureau of Labor Statistics found.


Profits
  • As of November 22, 2022, of the 482 S&P 500 Index companies reporting third-quarter earnings, 331 beat analysts’ estimates, according to S&P Dow Jones Indices.
  • Corporate profits fell 1.1% at a quarterly rate in the third quarter compared with the second quarter, the Bureau of Economic Analysis reported.


Emotion
  • The Conference Board Consumer Confidence Index declined in November.


Europe
  • Eurostat reported euro area annual inflation fell to 10.0% in November from 10.6% in October.
  • The European Commission’s Economic Sentiment Indicator for the euro area increased in November, for the first time since February.


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


Risks
  • High energy prices, worsened by the Russia-Ukraine War, increase the risk of stagflation and recession, even as central banks seek monetary policy normalization.
  • 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.


Go behind the numbers for commentary from Putnam's active investors

Putnam Perspectives


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.