Highlights of key economic statistics from last week compiled by Putnam Investments.
- The Producer Price Index for final demand rose 0.5% in April, according to the Bureau of Labor Statistics.
- The CPI rose 0.3% and core CPI increased 0.6% in April compared with March, the Bureau of Labor Statistics found.
- Wholesale inventories rose 2.3% in March, the Census Bureau noted.
- Initial jobless claims rose by 1,000 to 203,000 in the week ended May 7, 2022, the Labor Department reported.
- As of May 5, 2022, of the 434 S&P 500 Index companies that reported first-quarter earnings, 342 beat analysts’ estimates, according to S&P Dow Jones Indices.
- The NFIB Small Business Optimism Index remained unchanged in April, while the outlook declined to the lowest level in the survey’s history.
- The University of Michigan’s index of consumer sentiment dropped to 59.1 in May from 65.2 in April.
- The ZEW Indicator of Economic Sentiment for Germany increased slightly in May but remained at a negative level.
- The Office for National Statistics reported GDP fell by 0.1% in March in the United Kingdom.
- The United Kingdom’s industrial output declined by 0.2% in March compared with February, the Office for National Statistics stated.
- The yield on the 10-year Treasury note declined.
- Rising 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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