TEC Canada is pleased to provide the monthly Andersen Economic Report exclusively to our members to offer professional updates on the current economic environment in Canada, the USA, and globally. As the former assistant chief of the Bank of Canada’s research department, Dr. Peter Andersen provides valuable economic insight to help you make better business decisions.
May 2024 PREVIEW:
Canada | Core Inflation Drops Below 2% | Economic Growth Resumes | Housing Market Remains Fragile
Canada’s inflation has dropped, with core CPI showing 3-month annualized increases below 2%. The economy is seeing growth after a 6-month stall-out, with GDP gains driven by growth in the service sector, transportation, warehousing, accommodation, and food industries, and an observable increased real income for consumers. Energy exports and metal ore mining are growing, but the housing market’s stability is fragile and continues to rely on future Bank of Canada rate cuts and Federal Budget adjustments.
United States | Inflation Stays High Amid Growth | Labour Costs Rise by 4.9% | Businesses to Increase Prices
In the US, inflation remains elevated due to steady growth, with increases in CPI and core PCE indexes. There is an ongoing compensation cost challenge as the employment cost index, measuring labour costs, increases at a 4.9% annualized rate. These heightened labour costs will leave businesses to pass on the cost to consumers through increased selling prices as productivity gains fall short of offsetting them.
Global | Commodity Prices Surge Globally | Copper and Other Metals Show Sharp Increases | Crude Prices Continue to Climb
Globally, there is a comeback in commodity price inflation, which could complicate the ability to hit central bank inflation targets. Copper, a robust economic indicator, is sharply on the rise, along with kraft pulp up by 25%, zinc by 11%, aluminum by 9%, and iron ore by 7%. Additionally, the benchmark crude price is steadily increasing, marking another commodity on the upswing.
Excited to dive into the full May 2024 Andersen Economic Report? As a valued member of TEC Canada, you can access the complete report under the ‘Resources’ section of the TEC Canada App!
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