U.S., Canadian Economies Expand In Third Quarter

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Visit MSCI’s website and click on industry data to learn more about our Metals Activity Report (MAR), Momentum Monitors, and Economic Opportunity and Risk Tracker.

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

• The U.S. economy increased at an annual rate of 2.9 percent in the third quarter of 2022, according to the second estimate released by the Bureau of Economic Analysis (BEA). The BEA’s first estimate showed 2.6 percent growth. The improvement reflected upward revisions to consumer spending and nonresidential fixed investment while imports also fell more than previously estimated. Meanwhile, Canada’s economy grew at an annualized pace of 2.9 percent in the third quarter of 2022. That number was down from 3.2 percent in the second quarter.
• The Institute for Supply Management’s purchasing managers’ index (PMI) for the United States fell to 49 percent in November, 1.2 percentage points lower than its October level. The index is now at its lowest point since May 2020. Readings for new orders, production, backlog of orders, and employment all fell last month. Read the full report here.
• The S&P Global Canada Manufacturing PMI increased to 49.6 in November from 48.8 in October. While the reading signals a slower rate of contraction, the PMI has been below the 50.0 mark that indicates contraction for four months. New orders fell for the fifth month in a row and production also was down. Read the full report here.
• Inflation moderated somewhat in the United States in October. Personal incomes rose 0.7 percent while personal consumption expenditures (PCE) increased 0.8 percent. The PCE price index, an indicator the Federal Reserve uses to gauge inflation and set interest rate policy, was up 0.3 percent. Read the full report here.
• S. businesses added 263,000 jobs in November while the U.S. unemployment rate stayed at 3.7 percent. The manufacturing industry added 14,000 jobs and there were notable job gains in the leisure and hospitality, healthcare, and government sectors. Employment declined in retail trade and in transportation and warehousing. Read the full report here. Cumulative growth in manufacturing employment in 2021 and 2022 was the best on record since 1983 and 1984. Some analysts said November’s positive jobs report could indicate to the Federal Reserve that inflation will continue to remain high.
• In other U.S. jobs news: employers said there were 3 million jobs left unfilled in the country at the end of October. That number was down from about 10.6 million the previous month. The October report showed 746,000 manufacturing job openings, down from 835,000 in September and the lowest number reported since December 2021.
• In Canada, meanwhile, in November businesses added 10,000 jobs while the nation’s unemployment rate fell 0.1 percentage points to 5.1 percent. The manufacturing, finance, insurance, real estate, rental and leasing, information, culture, and recreation sectors all added jobs while the construction and wholesale and retail trade sectors were among those that lost them. Statistics Canada also reported Statistics Canada the number of job vacancies rose 3.8 percent in September to 994,800.