Canada – In June, total employment increased 93.0K after rising 24.7K in May. Since July 2009, the Canadian economy has added 403K jobs, over half of which were created in the past three months. Significant gains were observed on the month in both full-time (+48.9K) and parttime (+44.2K) employment. The private sector accounted for the majority of these (51.9K), with the public sector and the self-employed contributing 15.7K and 25.6K, respectively. This labour force survey will force the Canadian central bank to focus more on domestic developments than on international ones in setting its monetary policy going forward. Markets are now pricing in a more than 95% chance of a July 20 increase in rates.
Home-building activity in Canada is showing signs of slowing. In May, residential building permits were down for both single- and multiple-family dwellings (-6.5% and - 2.4%, respectively). Moreover, in June, housing starts dropped 3.1% to 189.3K units from an upwardly revised 195.3K one month earlier. Singles climbed 1.4% to 77.8K while multiples fell 5.8% to 89.2K. With interest rates likely to mount in Canada over 2010, activity should moderate in the residential real-estate market in the second half of the year.
Still, the new-home price index rose 0.3% in May, in line with expectations. This marked an eleventh consecutive monthly advance. The new-home price index has bounced back 3.1% since bottoming in June 2009 and is now only 0.4% from its 2008 peak level.
Finally, in June, the Ivey Purchasing Managers Index slipped to 58.9 from 62.7 the month before.
United States – In May, the ISM non-manufacturing Purchasing Managers Index slid 1.6 points to 55.4. The new orders and business activity indexes retreated but nevertheless remained in expansion territory (-2.7 to 54.4 and -3.0 to 58.1, respectively). The results indicate that
the non-manufacturing sector continues to grow, albeit at a slower pace.
Chain-store sales jumped 3.0% year over year, with the strongest performance turned in by department stores (+5.9%). Drug stores registered the weakest growth, up only 0.8% over the past 12 months.
Again in May, wholesale sales dipped 0.3% after rising 0.9% the previous month. Sales of durable goods sprang 0.5% while those of non-durable goods sagged 1.0%. Inventories grew 0.5% after expanding 0.2% in April.
Home-building activity in Canada is showing signs of slowing. In May, residential building permits were down for both single- and multiple-family dwellings (-6.5% and - 2.4%, respectively). Moreover, in June, housing starts dropped 3.1% to 189.3K units from an upwardly revised 195.3K one month earlier. Singles climbed 1.4% to 77.8K while multiples fell 5.8% to 89.2K. With interest rates likely to mount in Canada over 2010, activity should moderate in the residential real-estate market in the second half of the year.
Still, the new-home price index rose 0.3% in May, in line with expectations. This marked an eleventh consecutive monthly advance. The new-home price index has bounced back 3.1% since bottoming in June 2009 and is now only 0.4% from its 2008 peak level.
Finally, in June, the Ivey Purchasing Managers Index slipped to 58.9 from 62.7 the month before.
United States – In May, the ISM non-manufacturing Purchasing Managers Index slid 1.6 points to 55.4. The new orders and business activity indexes retreated but nevertheless remained in expansion territory (-2.7 to 54.4 and -3.0 to 58.1, respectively). The results indicate that
the non-manufacturing sector continues to grow, albeit at a slower pace.
Chain-store sales jumped 3.0% year over year, with the strongest performance turned in by department stores (+5.9%). Drug stores registered the weakest growth, up only 0.8% over the past 12 months.
Again in May, wholesale sales dipped 0.3% after rising 0.9% the previous month. Sales of durable goods sprang 0.5% while those of non-durable goods sagged 1.0%. Inventories grew 0.5% after expanding 0.2% in April.
