Highlights of key economic statistics from last week compiled by Putnam Investments.
- The S&P Global U.S. Manufacturing PMI Index dropped to 48.4 in May from 50.2 in April.
- Construction spending rose 1.2% in April compared with March, the Census Bureau noted.
- Initial jobless claims rose by 2,000 to 232,000 in the week ended May 27, 2023, the Department of Labor stated.
- The U.S. added 339,000 jobs in May and the unemployment rate rose to 3.7% from 3.4% in April, according to the Bureau of Labor Statistics.
- As of May 31, 2023, of the 488 S&P 500 Index companies reporting first-quarter earnings, 375 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The Conference Board Consumer Confidence Index fell in May.
- The European Commission’s Economic Sentiment Indicator decreased in the euro area in May.
- Germany’s Federal Statistical Office reported import prices declined 1.7% in April compared with March.
- The yield on the 10-year Treasury note declined.
- 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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