Canadian Economy, U.S. Manufacturing Sector Contract
- The Canadian economy contracted 0.1 percent from September 2019 to October 2019, the first month-to-month decline since last February, due to a decline in retail sales and drops in wholesale sales and manufacturing. Economists had predicted that growth in Canada would remain flat for the month.
- The Institute for Supply Management’s manufacturing index for the United States registered 47.2 percent, a decrease of 0.9 percentage point from the November reading of 48.1 percent. The reading was the lowest since June 2009 when it registered 46.3 percent.
- The Federal Reserve Board of Richmond said its manufacturing index for the Central Atlantic region fell from -1 in November to -5 in December, weighed down by decreases in the already negative indexes for shipments and new orders.
- In other economic news: the Chicago Federal Reserve’s National Activity Index, a gauge of future growth, was +0.56 in November, up from -0.76 in October; U.S. construction spending rose 0.6 percent between October 2019 and November 2019 and 4.1 percent between November 2018 and November 2019; new home sales in the United States increased 1.3 percent between October 2019 and November 2019 and 16.9 percent between November 2018 and November 2019; and the Conference Board’s index of consumer confidence fell to 126.5 in December from 126.8 in November.