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July 6, 2015

Latest Economic News From The U.S. & Canada

  • In a reading that was worse than analysts had predicted, Statistics Canada announced the nation’s economy contracted 0.1 percent between March and April. Weakness in mining and oil and gas production drove the negative reading. Output by both sectors declined 3.4 percent.
  • The U.S. economy added 223,000 jobs in June as the nation’s unemployment rate fell to 5.3 percent from 5.5 percent the month before. Manufacturers added 4,000 jobs in June. Unfortunately, the Department of Labor also announced that 281,000 Americans filed for federal unemployment benefits for the week that ended June 27, up from 271,000 the week before. The four week moving average of first-time claims also increased slightly, as did the number of individuals who continued to receive benefits. That figure rose to 2.264 million for the week that ended June 20 from 2.249 million the week before.
  • The Institute for Supply Management purchasing managers’ index (PMI) increased to 53.5 in June from 52.8 in May. A rise in new orders, production and employment all contributed to the positive report. Four industries, including primary metals, contracted, however. Additionally, the Markit PMI (PMI) for the United States fell to 53.6 in June from 54.0 in May as output declined and new orders improved slightly. Meanwhile, the Royal Bank of Canada PMI increased to 51.3 in June from 49.8 in May as output and new orders improved.
  • The Dallas Federal Reserve Bank announced the manufacturing sector in Texas continued to show weakness in June. The bank’s monthly manufacturing reading showed production improved, but remained in negative territory, as did readings for capacity utilization and shipments.
  • In other economic news: construction spending in the United States increased 0.8 percent from April 2015 to May 2015 and 8.2 percent from May 2014 to May 2015.