Widespread labor shortages are hampering companies’ ability to capitalize on an economy that is expanding as the country recovers from a devastating pandemic. Firms will not experience a return to the way things were in the labor markets before the pandemic. The retirement of baby boomers, ... READ MORE >
coronavirus
Strong demand boosted manufacturing growth as PMI reached a four-month high
The headline manufacturing Purchasing Managers’ Index increased by 1.2 percentage points in September, to 61.1%, continuing to indicate overall expansion of the manufacturing sector. The increase in the overall index, the 16th in a row dating to April 2020, was driven by upticks in prices paid and ... READ MORE >
Spending posted strong gains in August, a boost from the enhanced child tax credit
Personal spending rose by 0.8% in August, following a downwardly revised decrease of 0.1% in July and showing the strong impact of the extra incomes from the enhanced child tax credit that began in July. The direct payments to families from the tax credit helped to offset the continuing decline in ... READ MORE >
Canada’s GDP showed modest contraction in July
Canada’s gross domestic product contracted by 0.1% in July, continuing the trend from the second quarter, according to government data released Friday. Losses in agriculture, coupled with continued global supply chain issues, wiped out gains in other sectors. This trend undermines the hope of a ... READ MORE >
Initial jobless claims rose for third straight week as millions lost federal pandemic benefits
First-time jobless claims rose to 362,000 for the week ending Sept. 25 as enhanced federal unemployment benefits ended, according to government data released Thursday. The report provided the first look at how filing for benefits has changed with the expiration of enhanced federal unemployment benefits on ... READ MORE >
Chart of the day: Pending home sales rose a surprising 8.1% in August
Pending sales of homes bounced back strongly in August with an 8.1% increase after two consecutive months of declines, according to data released Wednesday by the National Association of Realtors. While the increase exceeded analysts' forecast of 1.8%, it comes as housing inventory has increased ... READ MORE >
Natural gas shortage and soaring prices threaten economic growth
Soaring natural gas prices point to an energy shortage across the globe, from the United States to Europe and China. The crunch has the potential to turn into a crisis if not managed, and has already caused industrial and residential power outages, threatened economic growth and jeopardized climate ... READ MORE >
RSM US Manufacturing Outlook Index: An expansion moderated by supply chain and labor constraints
Manufacturing conditions in September remain far above recession levels, suggesting a positive outlook for the economic expansion. Yet surveys of manufacturers conducted by five of the regional Federal Reserve banks once more pointed to supply chain and labor issues and a reassessment of their ... READ MORE >
Chart of the day: Goods trade deficit widened in August as delta variant weighed on exports
A rise in imports led to a higher U.S. trade deficit in goods in August, pointing to the impact of the delta variant on exports, while automobiles took center stage in dragging down both exports and imports. The U.S. advanced goods trade deficit inched up by $0.8 billion to $87.6 billion in August, or ... READ MORE >
Consumer confidence declined again in September as delta variant dampened optimism
The headline Consumer Confidence Index fell to 109.3 in September—a seven-month low—from 115.2 in July in another sign that the delta variant is dampening consumer optimism and spending. Concerns about the economy prompted consumers to plan to buy less as the six-month buying intentions for homes, ... READ MORE >