The service sector registered slower growth in February as inflation and labor shortages remained top concerns, according to a report from the Institute for Supply Management on Thursday. The services purchasing managers’ index declined 3.4 percentage points to 56.5 on the month, but for the 21st month ... READ MORE >
Coronavirus
Initial jobless claims at lowest point since December as omicron retreats
New filings for jobless benefits fell below the pre-pandemic level for the first time since December as the economy continued to recover from the omicron surge, according to government data released Thursday. New filings—a proxy for layoffs—dropped to 215,000 for the week ending Feb. 26 from an ... READ MORE >
Bank of Canada raises rates in response to inflation
The Bank of Canada announced on Wednesday that it would raise its overnight rate to 0.5%, 25 basis points from the lower bound policy rate of 0.25%, to tackle inflation. This marks the first rate hike in more than three years. The bank, however, said it would keep its holdings of bonds on its balance ... READ MORE >
RSM US Financial Conditions Index shows ebbing confidence
The composite RSM US Financial Conditions Index opened Tuesday at 0.2 standard deviations below zero. Although not significantly different from normal levels of risk, the overall trend shows a loss of confidence and increased volatility, as would be expected at a moment of geopolitical ... READ MORE >
Chart of the day: Manufacturing grows as supply chains improve
The manufacturing sector expanded in February as the economy continued a strong rebound. The manufacturing purchasing managers’ index rose 1 percentage point to 58.6 in February, registering the 21st consecutive month of growth, the Institute for Supply Management reported on Tuesday. The sector has ... READ MORE >
Canada’s growth picked up at end of last year as economy reopened
The Canadian economy ended 2021 on a strong note, expanding by 4.6% on an annual basis thanks to a reopening economy, according to data released by Statistics Canada on Tuesday. Real gross domestic product, after adjusting for inflation, grew by 1.6% in the fourth quarter on a quarterly basis following ... READ MORE >
Consumer confidence sours but capital spending holds strong
The final estimate for consumer sentiment in February came in slightly higher than the advance estimate, rising to 62.8 from 61.7 previously, yet remaining at a decade low. Concerns over elevated inflation, rising interest rates and higher gas prices all took a toll on confidence, according to a new ... READ MORE >
Canada’s supply chain worsens amid omicron’s spread
RSM Canada’s Supply Chain Index worsened to 1.84 standard deviations below zero in January, down from a revised 1.36 standard deviations below zero in December as the omicron variant spread across Canada and the world. The highly infectious strain of the coronavirus hurt the supply chain more than ... READ MORE >
U.S. consumers spend more in January, defying inflation
Personal spending rebounded in January even as inflation rose at the highest rate in decades. Consumers looked past the omicron surge to spend more for the first time in three months on an inflation-adjusted basis. Spending rose 2.1% on the month, and 1.5% after adjusted for price increases while the ... READ MORE >
U.S. new home sales declined in January
New home sales dropped 4.5% in January as high prices and increasing mortgage rates slowed demand, according to data from the Census Bureau on Thursday. The omicron variant and colder-than-usual weather in January also contributed to the decline. As a result, inventory levels increased to 6.1 months of ... READ MORE >