Inflation and the omicron surge did not deter American consumers from beginning the year on a strong note as retail sales rebounded sharply in January. Purchases at retail stores, restaurants and online rose 3.8%, outstripping inflation for the first time in three months, the Commerce Department ... READ MORE >
Covid-19
Energy shock: Potential impact of Russian invasion of Ukraine
A tight oil market and potential spillover from geopolitical competition has unnerved investors over the past few months, sending oil prices to elevated levels not observed in years. The price of oil has almost doubled since the start of last year and, given current tensions, is poised to move higher. ... READ MORE >
Protests’ ramifications on the Canadian economy
The trucker convoy has shuttered the Canadian economy, with consequences reaching far beyond cross-border trade and encompassing the supply chain, inflation, the labor market and economic growth. The protests, which led Prime Minister Justin Trudeau to declare a national public order emergency on ... READ MORE >
U.S. January consumer price index: Inflation continues to surge
Nothing in January’s consumer price index data released on Thursday implies that the surge in inflation has peaked. Last month's CPI increase will add to the difficult choices at the Federal Reserve on the magnitude of the interest rate hikes that make up the next step of its policy ... READ MORE >
Chart of the day: New jobless claims continue to fall
Initial jobless claims fell for the third straight week as the labor market recovers from the omicron surge. New filings for jobless benefits dropped by 16,000 to 223,000 for the week ending Feb. 5 on a seasonally adjusted basis, according to data released by the Labor Department on Thursday. The ... READ MORE >
Canada’s unemployment rate rises as omicron spreads
Canada lost 200,000 jobs in January as the omicron variant led to tightened restrictions across the country, according to data released by Statistics Canada on Friday. Unemployment rose for the first time in nine months by 0.5 percentage points to 6.5%. Workers who had to quarantine without ... READ MORE >
U.S. January jobs report shows strong gains and significant upward revisions
The American labor market remained red hot in January and that strength will stimulate a discussion of faster interest rate hikes by the Federal Reserve at its March meeting. The net increase of 467,000 in total employment on the back of a significant upward revision to the December estimate, from ... READ MORE >
Chart of the day: Jobless claims fall as omicron crests
Initial jobless claims fell in back-to-back weeks as the omicron variant's surge continued to fade in the second half of January, bringing last week's number closer to the pre-pandemic average, according to government data released Thursday. The headline number dropped to 238,000 on a seasonally ... READ MORE >
Canada’s GDP surpasses pre-pandemic level
Canada’s gross domestic product in November rose by 0.6%, surpassing the pre-pandemic level by 0.2% thanks to growth across almost all sectors of the economy, according to data released by Statistics Canada on Tuesday. November’s strong growth can be credited to Canada’s high vaccination rates. With ... READ MORE >
Acceleration of wage increases raises caution flag for policymakers
Friday’s report that the Employment Cost Index had increased at the fastest pace in decades confirmed that the Great Resignation is bolstering the bargaining power of workers. The wage component of the index has now accelerated from a 2.5% rate of increase in the third quarter of 2020 to 4.2% a ... READ MORE >