The U.S. economy maintained its momentum in September with personal spending that was stronger than forecasted. But even with the booming consumer demand, inflation ticked up only slightly, driven largely by energy and travel service prices. Spending rose by 0.7% on the month, while the personal ... READ MORE >
Economics
Dollar ascendant? Why the dollar’s dominance will not fade.
Following a decade-long rise in the dollar’s value, declarations of its end as the world’s reserve currency are in vogue. With the days of zero interest rates giving way to higher rates, elevated inflation and rapidly changing rules of trade, is there anything to this talk? Our answer is ... READ MORE >
Resilient U.S. economy grows 4.9% in third quarter
Despite a bevy of headwinds, a resilient U.S. economy in the third quarter expanded at a 4.9% rate on a seasonally adjusted annualized basis and at a 2.9% rate on a year-ago basis. The top-line rise in GDP was turbocharged by strong increases in household spending, inventory building and gross ... READ MORE >
Bank of Canada holds at 5% as growth outlook softens
The Bank of Canada held its overnight rate at 5% on Wednesday and will continue its policy of quantitative tightening, moves that were widely expected given the projected weaker growth at home and abroad this year and into next year. Weakened growth globally dampens economic activities in Canada as ... READ MORE >
Existing home sales fall to the lowest level since 2010
Existing home sales fell in September to the lowest level since 2010 as mortgage rates hit a multidecade high. Even if the Federal Reserve holds interest rates steady in the next two months, the lagged impact of monetary tightening, especially quantitative tightening, has continued to put pressure on ... READ MORE >
Housing starts and permits remain a drag on third-quarter growth
Housing starts rose 7.0% in September due to a rebound in multifamily homes, according to government data released on Wednesday, partly offsetting the sharp drop in August. Still, new residential starts remained a drag on growth in the third quarter amid higher mortgage rates, falling 4.2% on a quarterly ... READ MORE >
Canada’s inflation had broad-based deceleration in September
Canada’s headline inflation rate declined to 3.8% in September from 4.0% in August, reversing the upward trend of the past three months and a sign of progress in the Bank of Canada's efforts to restore price stability. On a month-over-month basis, the consumer price index dropped by 0.1% for the first ... READ MORE >
Retail sales top forecasts as American consumers stay resilient
U.S. retail sales surged above expectations in September, ending a robust quarter with a bang and raising the possibility that gross domestic product for the third quarter will be higher than expected. Fueled by a healthy level of excess savings--which is around $400 billion in our recent estimate—and ... READ MORE >
Consumer sentiment hits 5-month low amid elevated inflation expectations
Consumer sentiment this month dropped to the lowest level since May, according to preliminary October data in the University of Michigan survey released Friday. The decline stems from the rebound in inflation, high gasoline prices and weakened expectations due to a looming government shutdown. More ... READ MORE >
Consumer price index: Volatility in energy and gas makes price stability elusive
Volatility in energy and gasoline prices, along with stubborn housing and rent costs, were the major drivers of inflation in the September consumer price index. Both illustrate the difficulties in restoring price stability, and given growing risks to oil prices linked to the outbreak of hostilities ... READ MORE >