In our four-part blog series, RSM’s senior industry analysts explore back-to-school shopping trends and the impact on consumer businesses. Many analysts use back-to-school shopping as an indication for how holiday sales will trend, a theory confirmed on Walmart’s recent earnings call. If July’s ... READ MORE >
Economics
New home sales remain bright spot in housing, rising on strong supply
New home sales remain a bright spot in a housing market that has cooled amid the surge in mortgage rates. Sales of new homes increased by 4.4% in July to 714,000, according to Commerce Department data released on Wednesday. The rebound in new home sales has continued for more than a year with July's ... READ MORE >
Canada retail sales edge higher, bolstered by car purchases
Retail sales in Canada climbed by 0.1% to $65.9 billion in June, according to data released by Statistics Canada on Wednesday. Despite the slight increase, the new data offers evidence of cooling consumer demand. The increase was entirely driven by the sales of motor vehicles and parts. Excluding motor ... READ MORE >
Existing home sales fall near January low as rates surge
Sales of existing homes fell in back-to-back months as multi-decade high mortgage rates continued to suppress demand and supply. The data from the National Association of Realtors certainly added more risks to our call that a housing bottom has passed. Read more of RSM's insights on the real estate ... READ MORE >
Industrial production and housing rebound in July, affirming GDP growth outlook
Industrial production, housing starts and permits in July have set the tone for a robust third quarter, as GDP growth is expected to be stronger than the long-run level of 1.8%. Industrial production rose 1% on the month, while housing starts and permits rose 3.9% and 0.1%, respectively, according to ... READ MORE >
Robust retail sales data in July raises Q3 GDP forecast
American consumers continued to show a robust spending appetite in July as sales from retail and food services came in much hotter than expected. Total sales rose 0.7% on the month, much higher than the 0.4% forecasted and was the fourth consecutive increase since April. The control group, which ... READ MORE >
Canadian inflation ticks up but underlying data may bode well for interest rates
Canada’s July inflation figures are a somber reminder that the road back to 2% will take time and patience. The headline inflation rate stands at 3.3%, above the 1-3% target range after months of sharp decline, according to data Statistics Canada released Tuesday. A 3.3% inflation rate is clearly ... READ MORE >
Producer prices, consumer sentiment data show signs of more price stability
Producer price data and consumer sentiment data released Friday showed signs of more price stability, and this good news on the inflation front should keep the economy on track to grow in the third quarter. The producer price index was up 0.3% in July after June's downward revision, according to the ... READ MORE >
Near-target inflation fuels hope of soft landing for economy
Inflation stabilized further in July as the consumer price index data met expectations, the Bureau of Labor Statistics reported on Thursday. The slight uptick in annual inflation to 3.2% from 3.0% could be dismissed due to the base year effect, as inflation has come down fast from a peak in June last ... READ MORE >
Rates outlook: As economy enters glide path, bond market hedges its bets
There are growing signs that inflation is retreating while the labor market remains healthy. Absent another shock, the Federal Reserve is likely to ease up on its rate increases as these dynamics take hold. Even a pause in rate hikes would most likely guide the economy toward a mild downturn rather ... READ MORE >