The Fed has had a fairly sanguine view on inflation and this (CPI report) will certainly confirm that view. It continues to give the Fed lots of room to maneuver.
Retail sales -- a little disappointing when you look outside autos. All in all, it suggests moderate growth in consumer spending.
The unemployment rate stood at 6.1 per cent in November - the lowest rate since mid-2001. The return to higher growth in 2006 should allow the annual unemployment rate to decline slightly in that year.
It (the GST cut) is their big initiative and it doesn't leave them a lot of room to do other things.
These numbers will not change the Fed's thinking. The Fed is on hold for the time being.
We expect further declines in 2006 and subsequent years as pent-up demand is fulfilled and as interest rates rise over the medium term.
A very solid number, indicating that manufacturing is continuing to expand.
We are seeing the prices-paid component getting up there, a fairly strong number, which I think will likely heighten the Fed's concern on the inflation front.
The No.1 threat for Canada going forward is the U.S. dollar.