Highlights of key economic statistics from last week compiled by Putnam Investments.
- Housing starts rose 2.2% in April compared with March, the Census Bureau noted.
- Retail sales rose 0.4% in April compared with March, the Census Bureau stated in an advance report.
- Industrial production increased 0.5% in April, according to the Federal Reserve.
- Initial jobless claims fell by 22,000 to 242,000 in the week ended May 13, 2023, the Department of Labor stated.
- As of May 17, 2023, of the 466 S&P 500 Index companies reporting first-quarter earnings, 357 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The ZEW Indicator of Economic Sentiment for Germany declined in May, reaching a negative level for the first time since December 2022.
- Euro area annual inflation increased to 7.0% in April from 6.9% in March, Eurostat noted.
- Eurostat reported euro area GDP grew 0.1% in the first quarter.
- Eurostat noted euro area industrial production dropped 4.1% in March compared with February.
- The yield on the 10-year Treasury note rose.
- 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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