Our back-of-the-envelope estimate indicates that the economy would suffer a modest 0.1% drag during the current quarter should the action last for a month. … READ MORE >
Economics
Soft landing likely as Canada added 40,000 jobs in August
A look at August’s job report reveals clear signs of a soft landing. Canada added 40,000 jobs, smashing expectations, and offset the modest loss in July many times over. The unemployment rate was unchanged at 5.5%. Immigration has played a vital part in keeping the economy buoyant as job growth was led by population growth. … READ MORE >
As financing costs surge, the real economy faces a reckoning: Rising loan costs are squeezing middle market firms
As the era of easy money and low-cost financing ends, middle market businesses are facing a reckoning.
Rising real interest rates are pushing up the cost of commercial and industrial loans, making it harder for these firms to meet payrolls and finance their expansion, according to a new survey from RSM US LLP. The result is a risk to economic growth across the real economy and, potentially, a recession. … READ MORE >
Initial jobless claims fall to lowest level in seven months
Initial jobless claims dropped to 216,000 last week, the fewest since February, according to data from the Bureau of Labor Statistics. … READ MORE >
Service sector growth in U.S. reaches a six-month high
The service sector grew faster in August on the heels of a surge in summer spending, the Institute for Supply Management reported on Wednesday. … READ MORE >
Bank of Canada holds rates steady amid a cooling economy
The central bank’s decision to keep rates steady also suggested that its campaign of rate increases might be over, rendering a rate peak of 5%. … READ MORE >
Financial conditions and the cost of doing business: A webinar from RSM US and the U.S. Chamber of Commerce
Join RSM Chief Economist Joe Brusuelas and U.S. Chamber of Commerce Executive Vice President Neil Bradley on Monday, Sept. 25, at 1 p.m. eastern for a wide-ranging conversation on America’s real economy. … READ MORE >
Tech layoffs calm, but tech jobs still take a hit
Artificial intelligence advancements continue to be a primary source of optimism for the technology ecosystem and a partial counterbalance to challenges in media and entertainment. … READ MORE >
Canada’s economy contracts as higher interest rates take a toll
Gross domestic product fell by 0.2% in the second quarter, according to data released by Statistics Canada on Friday. On a monthly basis, GDP fell by 0.2% in June after a 0.2% increase in May. … READ MORE >
Contraction in manufacturing eased in August
The manufacturing purchasing managers’ index rose to 47.6 in August, up from 46.4, but remained under the 48.7 that is considered neither an expansion or contraction. … READ MORE >