Tag: Recession

The Federal Reserve cut interest rates by half a point in September, the first cut since 2020. The Federal interest rate sits between 4.75% and 5%, hopefully mitigating the effects of high inflation and offering individuals and businesses a bit of relief. Despite this recent cut, the interest rate is nearly double the pre-pandemic rate.

NACM’s Credit Managers’ Index (CMI) fell 0.4 points to 53.1 in September, showing expansion but at a weakening pace. “Hopefully this is indicative of the soft landing the Fed has been aiming for,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.

NACM’s Credit Managers’ Index (CMI) fell 0.5 to 53.9 in June. This change in the CMI indicates a continued slowdown in economic activity. “There is no discernible trend in the CMI except that it remains in a low orbit,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.

Despite higher interest rates, the Canadian economy is exceeding expectations and has dodged the predicted 2023 recession. Real GDP at basic prices grew 0.6% in January (7.4% annualized), and preliminary estimates pointed to 0.4% growth in February (4.9% annualized). This suggests that growth in the first quarter of 2024 is on track for around 3.5%, according to data from Statistics Canada.