Service inflation and rents, though, are still advancing a well above 4%, which in conjunction with slowing growth does not bode well for the economy … READ MORE >
Industrials
The risk of an inventory correction is rising
Producers and wholesalers have prepared for higher tariffs by buying goods in advance, which is creating the conditions for a modest inventory correction should demand slow. … READ MORE >
Manufacturing prices rise in February amid higher tariffs
The prices paid subindex in the ISM manufacturing report rose to 62.4 in February, the highest level since June 2022, from 54.9 in January. … READ MORE >
Supply chain issues limit growth among major data center hyperscalers
Supply chain constraints are limiting revenue growth among the largest U.S. data center developers—known as hyperscalers—and threatening the United States’ progress in artificial intelligence innovation, according to recent company earnings calls. … READ MORE >
Trump’s steel and aluminum tariffs turn uncertainty into concern for Canada
While new U.S. tariffs apply to all steel and aluminum imports, Canada will be the most impacted country as it is the largest source of U.S. imports by far. … READ MORE >
Canada’s unemployment rate falls to 6.6% as business sentiment improves
Canada’s economic resurgence appears well under way as January saw 76,000 new jobs and a lower unemployment rate as business sentiment improved. … READ MORE >
Logistics and transportation companies cautiously optimistic in Q4 earnings calls
Fourth-quarter 2024 earnings reports from leading trucking and logistics companies revealed muted demand amid a challenging freight backdrop. However, a theme of cautious optimism emerged. … READ MORE >
Tariffs would fray Canada-U.S. ties in energy and auto manufacturing
Although a blanket tariff by the U.S. on all Canadian imports is unlikely to materialize in the first half of 2025, there is still cause for concern as selective U.S. tariffs are possible and would be disruptive to both countries’ economies. To illustrate this, look at energy and auto manufacturing — Canada’s industries with the highest exports to the U.S. … READ MORE >
Durable goods orders were mixed in October as Q3 GDP remained strong
Business spending on equipment was mixed in October, likely because of uncertainty over the direction of fiscal and monetary policies, the Commerce Department reported on Wednesday. … READ MORE >
To contend with higher tariffs, businesses need to act now
Higher tariffs are likely over the next few years. In our estimation, firms do not have the luxury to wait and see how the policy changes turn out. … READ MORE >