IMF Predicts Global Growth Will Slow

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Meanwhile, here are the major economic headlines from the last week:

• The International Monetary Fund (IMF) predicts global economic growth will slow from 3.5 percent in 2022 to three percent this year and 2.9 percent in 2024. Global inflation is forecast to decline steadily, from 8.7 percent in 2022 to 6.9 percent in 2023 and 5.8 percent in 2024. The IMF says the U.S. economy will expand 2.1 percent this year, up from the 1.8 percent growth rate previously predicted for the year. The Canadian economy is expected to grow by 1.3 percent. That number was down from the IMF’s earlier prediction of 1.7 percent growth. Read more here.
• The National Federation of Independent Business’s Small Business Optimism Index fell half a point in September to 90.8 due largely to entrepreneurs’’ concern about the future business landscape. For the 21st straight month, the index also remained below its 49-year average of 98 points.
• According to the U.S. Department of Labor, during the week that ended October 7, 209,000 individuals filed for federal unemployment benefits for the first time. That number was up 2,000 from the week before. The four-week moving average of first-time claims fell, however. The number of individuals who continued to receive jobless benefits rose to 1.702 million during the week that ended September 30, up from 1.732 million the week before. The four-week moving average of continuing claims also rose.
• In other economic news: Real average hourly earnings for U.S. employees fell 0.2 percent from August 2023 to September 2023, but were up 0.5 percent from September 2022 to September 2023; Statistics Canada reported the total monthly value of building permits  in the country rose 3.4 percent in August to $11.9 billion due to gains in the non-residential sector; theU.S. Producer Price Index was up 0.5 percent between August and September 2023 and 2.2 percent year-over-year; and the U.S. consumer price index increased 0.4 percent from August to September 2023 and 3.7 percent year-over-year due mostly to rising home prices.