There were some encouraging signs U.S. inflation pressures and labor shortages were easing, a Federal Reserve report showed on Wednesday, but economic activity was tepid as the central bank’s actions weigh on growth.
Five of the Fed’s districts reported slight or modest increases in overall economic activity over the last several weeks, while six noted no change or slight declines from the previous reporting period, and one cited a significant decline, the U.S. central bank said.
The Fed released its latest survey on the health of the economy derived from business contacts nationwide after a slew of recent data raised hopes that too-high inflation is on a sustainable path downwards, with wage increases moderating and a scramble for available workers lessening somewhat.
But that is twinned with the cost of such action as the Fed tries to dampen demand across the economy.
“On balance, contacts generally expected little growth in the months ahead,” the Fed said in its survey, known as the “Beige Book,” which was conducted across its 12 districts through Jan. 9.
U.S. retail sales fell by the most in a year in December, government data showed earlier on Wednesday, putting consumer spending and the overall economy on a weaker growth path heading into 2023.
The Fed has raised interest rates over the past year at the fastest pace in 40 years in order to tamp down persistently high inflation but with progress finally being made, policymakers are growing increasingly confident they will reach a stopping point this spring with the policy rate around 5%.
The Fed’s benchmark overnight lending rate currently sits in a target range of 4.25% to 4.50% and investors expect the central bank to raise its policy rate by a quarter percentage point at the conclusion of its next two-day meeting on Jan. 31-Feb. 1.
But there was more positive news on inflation. Many Fed districts said that the pace of increases had slowed from that of recent reporting periods while almost half of all districts reported wage pressures had lessened.
“On balance, contacts across Districts said they expected future price growth to moderate further in the year ahead,” according to the report.
That said, “while some districts noted that labor availability had increased, firms continued to report difficulty in filling open positions,” the report noted.
By the Fed’s preferred measure, inflation still remains almost three times the central bank’s 2% target rate while U.S. job openings fell less than expected in November, with the labor market remaining tight.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
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