Weekly economic update for December 6, 2021


Highlights of key economic statistics from last week compiled by Putnam Investments.


economy
  • Construction spending rose 0.2% in October compared with September, the Census Bureau stated.
  • The IHS Markit U.S. Manufacturing PMI dipped to 58.3 in November from 58.4 in October as companies reported supply shortages.


Employment
  • Initial jobless claims rose by 28,000 to 222,000 in the week ended November 27, 2021, the Department of Labor reported.
  • The United States added 210,000 jobs and the unemployment rate fell to 4.2% in November from 4.6% in October, according to the Bureau of Labor Statistics.


Profits
  • As of November 26, 2021, of the 487 S&P 500 Index companies reporting third-quarter earnings, 390 beat analysts’ estimates, according to S&P Dow Jones Indices.


Emotion
  • The Conference Board Consumer Confidence Index decreased in November.


Europe
  • Eurostat reported euro area annual inflation is expected to rise to 4.9% in November from 4.1% in October.
  • Eurostat stated euro area industrial producer prices increased 5.4% in October compared with September.
  • Germany’s Federal Statistical Office noted retail sales fell 0.3% in October compared with September.


Rates
  • The yield on the 10-year Treasury note declined.
  • In its Beige Book report, the Federal Reserve noted economic activity grew at a modest to moderate pace in most districts in November.


Risks
  • 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.
  • Upward pressure on inflation from multiple fronts (energy prices, housing costs, and the labor market) could pressure central banks to pull forward their timelines for monetary policy normalization.


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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.