The Bank of Canada kept its policy rate at 5% on Wednesday as the unexpected contraction of the economy in the second quarter gave a clear message of 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 ... READ MORE >
interest rates
Financial conditions and the cost of doing business: A webinar from RSM US and the U.S. Chamber of Commerce
Rising interest rates have taken a toll on the middle market businesses that make up America's real economy. Yet demand for labor remains strong, consumers continue to spend and inflation is easing. How to make sense of the cross-currents in America's real economy? Join RSM Chief Economist Joe ... READ MORE >
Canada’s economy contracts as higher interest rates take a toll
The picture of an economic slowdown is coming into focus as the Canadian economy contracted in the second quarter because of declining housing investments and household spending. Gross domestic product fell by 0.2% in the second quarter, according to data released by Statistics Canada on Friday. On ... READ MORE >
U.S. August jobs report: Labor market continues to cool
Cooler air permeating the nights as summer comes to an end is a perfect metaphor for an American labor market easing from the historically tight conditions of the past few years. In August, the U.S. economy added 187,000 jobs and the unemployment rate settled in at 3.8%, according to Labor Department ... READ MORE >
Job openings drop to lowest in more than two years
Job openings fell to 8.8 million in July, staying under 9 million for the first time since March 2021, according to the Bureau of Labor Statistics on Tuesday. The sharp drop was a surprise as the consensus forecast had pointed to only a slight decline to 9.5 million. June's number was also revised ... READ MORE >
Canada retail sales edge higher, bolstered by car purchases
Retail sales in Canada climbed by 0.1% to $65.9 billion in June, according to data released by Statistics Canada on Wednesday. Despite the slight increase, the new data offers evidence of cooling consumer demand. The increase was entirely driven by the sales of motor vehicles and parts. Excluding motor ... READ MORE >
Existing home sales fall near January low as rates surge
Sales of existing homes fell in back-to-back months as multi-decade high mortgage rates continued to suppress demand and supply. The data from the National Association of Realtors certainly added more risks to our call that a housing bottom has passed. Read more of RSM's insights on the real estate ... READ MORE >
Consumer products M&A cooled in the first half
Merger and acquisition activity among consumer products companies took a breather in the first half of the year as valuations were reset amid rising interest rates. Closed deal activity declined by more than 25% over the same period a year earlier, driven not only by the reset in valuations but ... READ MORE >
Canadian inflation ticks up but underlying data may bode well for interest rates
Canada’s July inflation figures are a somber reminder that the road back to 2% will take time and patience. The headline inflation rate stands at 3.3%, above the 1-3% target range after months of sharp decline, according to data Statistics Canada released Tuesday. A 3.3% inflation rate is clearly ... READ MORE >
Rates outlook: As economy enters glide path, bond market hedges its bets
There are growing signs that inflation is retreating while the labor market remains healthy. Absent another shock, the Federal Reserve is likely to ease up on its rate increases as these dynamics take hold. Even a pause in rate hikes would most likely guide the economy toward a mild downturn rather ... READ MORE >