Highlights of key economic statistics from last week compiled by Putnam Investments.
- 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.
- 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.
- 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.
- The Conference Board Consumer Confidence Index declined in November.
- 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.
- The yield on the 10-year Treasury note traded in a range.
- 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.
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