The Canadian economy expanded in November by 0.2% on a month-over-month basis, slightly exceeding expectations after staying flat for three months. The goods-producing industries were responsible for most of the expansion, growing by 0.6%, the highest rate since January last year. Meanwhile, the ... READ MORE >
Search Results for: inflation
The Fed’s key wage gauge slows to lowest level since 2021
The Employment Cost Index—the Fed's key metric for wage growth that accounts for labor composition—slowed to the lowest level since June 2021, according to the Bureau of Labor Statistics on Wednesday. The overall index eased to 0.9% in the fourth quarter on a seasonally adjusted basis, down from 1.1% ... READ MORE >
Strong job openings and consumer confidence point to robust employment gains
December's strong data on job openings and consumer confidence released on Tuesday foreshadowed another robust month of job gains in January, aligning with our above-consensus estimate for net payroll increases when the employment report is released on Friday. Job openings in the United States inched ... READ MORE >
Financial conditions turn positive amid economic resilience
For the first time since February 2022, the RSM US Financial Conditions Index has turned positive amid a robust economy, strong labor market, easing inflation and rising real wages and personal disposable income. Barely above zero, our index indicates normal levels of risk being priced into the ... READ MORE >
FOMC preview: Modest adjustments will lead to pivot by midyear
The FOMC next week will almost certainly leave its policy rate unchanged between 5.25% and 5.5% and maintain the pace of quantitative tightening. The hold in the policy rate should be understood as the Federal Reserve again signaling that it considers rates sufficiently restrictive to bring down ... READ MORE >
U.S. economy booms at a 3.3% pace in the fourth quarter
The U.S. economy expanded at a robust 3.1% pace from a year ago and closed the year with a booming 3.3% rate of expansion on the quarter, according to Commerce Department data released Thursday. The strong gains were driven by household consumption, gross private investment and government spending ... READ MORE >
The case for the Bank of Canada to accelerate rate cuts
With restrictive financial conditions, high interest rates and still-elevated inflation, the Canadian economy has come to a standstill and is now at a tipping point. The Bank of Canada’s decisions over the next few months could influence whether the economy arrives at a soft landing or falls into a ... READ MORE >
A rail merger and the evolution of North America’s supply chain
The merger of two major North American railroads will create a rail network that reaches both coasts and runs through the middle of the continent. The long-sought combination of Canadian Pacific and Kansas City Southern promises to make a seamless, faster supply network that will benefit Canada, Mexico ... READ MORE >
Bank of Canada holds rates steady at 5% amid weak growth
As expected, the Bank of Canada on Wednesday maintained its policy rate at 5 per cent and continued its restrictive monetary policies. At the same time, though, its public statements signed a more dovish tone. In softening its rhetoric, the central bank noted the slowdown in the global and domestic ... READ MORE >
Consumer sentiment rises above expectations in January
Consumer sentiment rose in January to the highest level since August 2021 as inflation concerns eased. American consumers showed more confidence in the economy, both now and in the future, the University of Michigan reported on Friday. The overall index increased to 78.8 from 69.7, much higher than ... READ MORE >