Looks like retail sales acted as the pulse on the economic heart monitor in June and July, with the other sectors of the US economy not faring as well; auto sales, construction and housing all weak. Manufacturing was generally higher.

There are 12 member regions from where the data is gathered; Cleveland and Kansas City showed steady growth. Chicago and Atlanta reported slower activity and the other regions were described as modest.

The Fed’s next policy setting meeting is scheduled for August 10th.  It is likely that the Fed will hold rates at their current levels well into next year to support the recovery as much as possible.

View entire articles at CBC News and Financial Post.

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I was wondering when the executives would realize that things aren’t quite as busy as they are being told…the sweet nothings that they were whispered must have had some sort of merit to warrant two consecutive prime rate increases…but who am I to argue?

It seems to be that the number one offender to Canada’s growth and recovery is the European debt crisis…this is starting to sound familiar no?? I think we should start referring to this crisis as the ”EDC” as news of this developing nightmare will be more and more prevalent in future economic updates.

The EDC is going to affect Canadian GDP (gross domestic product) by shaving off 0.1% this year, 0.3% for 2011 and 0.2% for 2012.

The growth of the Canadian economy for the 2nd quarter of 2010 will be less than half of what it was for the first quarter, and even lower for the 3rd.

This pretty much guarantees that interest rates won’t be moving with any significant upward pressure anytime soon.

View entire article at CBC News.

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US Federal Reserve Chairman, Ben Bernanke, had the difficult task of telling Congress that the outlook for the US economy continues to be “unusually uncertain.”

The bank’s policy makers are exploring and reviewing options to try to keep recovery momentum on-going. This is plotting a course through uncertain waters as the European debt crisis acts as force designed to weaken the best guided financial routes.

The one factor that does stand out as a constant is that the Fed will not be raising their key lending rate anytime soon. Economists predict that the rate will be held near zero well into 2011, and possibly 2012.

View entire article at CBC News.

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The information Mr. Carney is expected to share with us on Thursday June 22nd, will provide us with his insight on the world economy, Canada’s position, and a glimpse of what future rate increases may look like.

Canada’s international performace is seemingly “stellar” in our current global “black hole” recession. Mr. Carney’s address may outline Canada’s position of strength in our new world of economic chaos.  For once, and surprisingly, I am actually looking forward to hearing what  a banker has to say…

View entire article at Financial Post.

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Now at 0.75%, the BOC has increased by 0.25% from previous rate of 0.50%.

Fueled by domestic economic growth, the next increase is not as predictable in timing. The Bank has eased GDP forecasts to 3.5 % for 2010, 2.9% for 2011, and 2.2% for 2012.

The next BOC policy setting session is Sept 8th.

View entire article at CBC News.

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