By the numbers: The economy this week
Update for August 2, 2021
Highlights of key economic statistics from last week compiled by Putnam Investments.
- GDP grew at an annual rate of 6.5% in the second quarter, the Bureau of Economic Analysis noted in an advance estimate.
- New home sales dropped 6.6% in June compared with May, according to the Census Bureau and the Department of Housing and Urban Development.
- Durable goods orders increased 0.8% in June, in an advance report from the Census Bureau.
- Initial jobless claims fell by 24,000 to 400,000 in the week ended July 24, 2021, the Labor Department reported.
- As of July 23, 2021, with 24% of S&P 500 Index companies reporting second-quarter earnings, 88% reported a positive EPS surprise and 86% reported a positive revenue surprise, according to FactSet.
- The Conference Board Consumer Confidence Index edged higher in July.
- The University of Michigan’s index of consumer sentiment fell to 81.2 in July from 85.5 in June.
- The European Commission’s Economic Sentiment Indicator rose in July, reaching a record high.
- The ifo Business Climate Index for Germany fell in July.
- Eurostat reported that euro area GDP grew 2.0% in the second quarter compared with the previous quarter.
- The yield on the 10-year Treasury note traded in a narrow range.
- The Federal Open Market Committee held rates steady and said that the economy continues to strengthen.
- Divergent vaccination rollout timelines and virus mutations risk could cause a shift from a synchronized global recovery to a more fractured regional, multispeed recovery.
- Global leverage, created by pandemic response packages, is at worrisome levels and will eventually need to be paid for.
- A shift from “just in time” to “just in case” inventory models could exacerbate supply chain concerns.
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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.
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