Mixed results came from the housing sector in October as housing starts inched down by 0.7% while building permits rose sharply by 4.0%, according to data from the Census Bureau on Wednesday. Because both are proxies for the future supply of houses, we continue to see that supply has somewhat ... READ MORE >
Coronavirus
The infrastructure package will bolster productivity and economic modernization
The $1.2 trillion infrastructure package recently signed into law by President Biden will increase productivity, reduce business costs, cut carbon emissions, improve living standards and have the potential to lift economic growth above the current long-run rate of 1.8%. Once one accounts for ... READ MORE >
Chart of the day: Industrial production climbed back in October
Industrial production rebounded in October with a gain of 1.6% after a significant slowdown in September because of Hurricane Ida, pointing to healthy growth for the rest of the year. Output gains were recorded in every category from manufacturing to utilities to mining as constraints in energy and ... READ MORE >
Housing starts in Canada dropped for the fifth consecutive month
Housing starts in Canada dropped for the fifth consecutive month to 236,554 in October, down by 5.3% from September as builders grappled with shortages of materials and workers, according to data released by Canada Mortgage and Housing Corporation on Tuesday. Although the figure still stands above ... READ MORE >
Retail sales beat expectations in a sign of a strong holiday season
Retail sales rose by 1.7% in October as consumers, flush with cash, signaled a strong start to the final quarter of the year, according to a report from the U.S. Census Bureau on Tuesday. The increase beat an upwardly revised 0.8% in September and was the third month in a row that retail sales ... READ MORE >
Chart of the day: Consumer confidence erodes to decade low in November
Concerns over inflation crept into consumer confidence in November, pushing the index from the University of Michigan to a decade low of 66.8 from 71.7 in October, according to data released on Friday. Behind the decline was the rise in gasoline prices, which have long had a significant effect in ... READ MORE >
Strong labor demand pushed quit rate to a record
Demand for labor showed little change in September as job openings stayed at 10.4 million and the rate of people quitting their jobs reached an all-time high at 3.0%, according to new data on Friday from the Bureau of Labor Statistics. The imbalance of the labor market, where demand for labor ... READ MORE >
Chart of the day: Jobless claims approach pre-pandemic level
Claims for jobless benefits continued to signal a steady bounce back of the labor market as new filings declined to a pandemic low of 267,000 for the week ending Nov. 6. That was 4,000 fewer claims compared to the previous week and was the sixth consecutive weekly drop, according to data on Wednesday ... READ MORE >
U.S. inflation reached a three-decade high in October
Inflation continued to surge in October, mostly on the back of seasonal influences that boosted the cost of energy, transportation and food, sending the consumer price index up by 6.2% on an annual basis, a three-decade high. This data will complicate the Federal Reserve’s patient stance on rising ... READ MORE >
Chart of the day: Producer prices rise as cost pressures mount
The producer price index inched up 0.6% in October with about a third of the increase coming from higher gasoline prices. This followed a 0.5% increase in September and a 0.7% increase in August, according to a report by the Bureau of Labor Statistics on Tuesday. Still, October’s increase remained ... READ MORE >