Spending remained strong in March on the heels of robust income growth despite sticky inflation, according to Commerce Department data released on Friday. The data pointed to the underlying strength of the economy and provided a rebuttal of sorts to the disappointing gross domestic product figure ... READ MORE >
Economics
GDP growth slows to 1.6% in first quarter, exaggerated by volatile trade and inventory data
Overall growth in U.S. gross domestic product fell to 1.6% in the first quarter, but the slowdown was exaggerated by volatile trade and inventory data, which provided a 1.2% drag on overall activity. Final sales to domestic purchasers, by contrast, which exclude inventories and trade, increased by ... READ MORE >
Business equipment spending grows in March
Shipments of core capital goods rebounded in March, adding to the reasons why the data for gross domestic product should show an upside surprise when it is released on Thursday. The core capital goods shipments data, which excludes defense and aircraft, feeds into the calculation of GDP is a proxy for ... READ MORE >
Regime change: Businesses face higher costs in nominal and real terms
Higher-for-longer now applies to more than just the federal funds policy rate. It means a regime change for companies of all sizes when it comes to the cost of financing expansion or funding their operations. Whether it be high single-digit borrowing costs for large multinationals or double-digit ... READ MORE >
Existing home sales plunge amid stable jobless claims
March proved challenging for the housing market as sales of existing homes plummeted by 4.3%, marking the steepest drop since November 2022, according to the National Association of Realtors on Thursday. This decline mirrors earlier setbacks in housing starts and permits. A significant uptick in ... READ MORE >
Industrial production rebounds as housing starts plunge
Tuesday's mixed data on housing and industrial production shows how both sectors remained on a bumpy path as a result of elevated interest rates. Housing starts dropped by 14.7% to 1.32 million on an annualized rate, the lowest level since last August, while permits, a proxy for future projects, also ... READ MORE >
U.S. retail sales show surprising resilience
American consumers are continuing to show remarkable resilience in their spending habits, despite facing higher prices, particularly at the gas pump, according to retail sales data for March released by the Commerce Department on Monday. The swift recovery in retail sales in March, along with ... READ MORE >
Geopolitical tensions and the rising oil risk premium threaten global recovery
Global oil markets are pricing in a risk premium of $7 to $10 a barrel in the wake of Iran’s drone attacks on Israel over the weekend, posing the single largest risk to the current global economic recovery. Despite in the rise in the risk premium, reflected in futures markets, early trading in oil ... READ MORE >
U.S. consumer sentiment falls as inflation stays sticky
Consumer sentiment in the United States ticked down in April in a sign of the impact of rising inflation, particularly gasoline prices, over the past three months. The consumer sentiment index fell to 77.9 from 79.4, according to the University of Michigan survey on Friday. While the index is ... READ MORE >
Bank of Canada holds its rate at 5% in dovish statement
The Bank of Canada held its policy rate at 5% at its meeting on Tuesday, as widely expected, while continuing its restrictive monetary policy of quantitative tightening. But the central bank made a marked shift in its statement, turning from a focus on inflation to one on growth with a decidedly ... READ MORE >