OPEC+ Members Consider Delaying Production Increase, Delegates Say

post: BOC'S GOV. MACKLEM: THERE WAS STRONG CONSENSUS FOR A 25 BASIS POINTS CUT. post: BOC'S MACKLEM: WE DID DISCUSS DIFFERENT SCENARIOS, INCLUDING SLOWING THE PACE OF CUTS AND ALSO A 50 BPS CUT post: BOC'S MACKLEM: NOT SEEING BIG IMPACT ON EXCHANGE RATE FROM DIVERGENCE WITH U.S. FED ON RATES post: BOC'S GOV. MACKLEM: WE NEED TO SEE CANADIAN GROWTH ABOVE 2%, AND THE NEED FOR MORE GROWTH FACTORED INTO OUR POLICY DECISION.

Economic activity grew slightly in three Districts, while the number of Districts that reported flat or declining activity rose from five in the prior period to nine in the current period. Employment levels were steady overall, though there were isolated reports that firms filled only necessary positions, reduced hours and shifts, or lowered overall employment levels through attrition. Still, reports of layoffs remained rare. On balance, wage growth was modest, while increases in nonlabor input costs and selling prices ranged from slight to moderate. Consumer spending ticked down in most Districts, having generally held steady during the prior reporting period. Auto sales continued to vary by District, with some noting increases in sales and others reporting slowing sales because of elevated interest rates and high vehicle prices. Manufacturing activity declined in most Districts, and two Districts noted that these declines were part of ongoing contractions in the sector. Residential construction and real estate activity were mixed, though most Districts’ reports indicated softer home sales. Likewise, reports on commercial construction and real estate activity were mixed. District contacts generally expected economic activity to remain stable or to improve somewhat in the coming months, though contacts in three Districts anticipated slight declines post: *FED SAYS EMPLOYMENT GENERALLY FLAT, SLIGHTLY UP IN RECENT WEEKS post: FED BEIGE BOOK: ECONOMIC ACTIVITY GREW SLIGHTLY IN THREE DISTRICTS, WHILE THE NUMBER OF DISTRICTS THAT REPORTED FLAT OR DECLINING ACTIVITY ROSE FROM FIVE IN THE PRIOR PERIOD TO NINE IN THE CURRENT PERIOD. post: FED BEIGE BOOK: ON BALANCE, PRICES INCREASED MODESTLY IN THE MOST RECENT REPORTING PERIOD. post: FED BEIGE BOOK: DISTRICT CONTACTS GENERALLY EXPECTED ECONOMIC ACTIVITY TO REMAIN STABLE OR TO IMPROVE SOMEWHAT IN THE COMING MONTHS, THOUGH CONTACTS IN THREE DISTRICTS ANTICIPATED SLIGHT DECLINES.