Latest news with #MichaelPearce
The Hill
17-07-2025
- Business
- The Hill
Businesses are passing along tariff costs, Fed reports
Businesses across the economy are passing increased input costs from tariffs along to consumers in the form of higher prices, the Federal Reserve's latest anecdotal survey of domestic economic conditions found. Higher costs from tariffs were reported by businesses in all of the Fed's 12 regional districts, and many made the choice to raise prices as a result. 'Many firms passed on at least a portion of cost increases to consumers through price hikes or surcharges,' the Fed's July beige book, released Wednesday, reported. Those businesses that didn't push the additional costs through to their customers saw restricted profit margins, the beige book said, noting consumers' 'growing price sensitivity.' Inflation in the Labor Department's consumer price index (CPI) jumped in June, partly as a result of the tariffs. The CPI ticked up to a 2.7-percent annual increase last month from 2.4 percent in May and 2.3 percent in April. The move was in line with expectations. Many economists have been predicting that inflation coming from tariffs would show up in prices over the summer after the clearing of inventories of wholesale goods purchases made prior to the tariffs. Fitch Ratings recently put the aggregate U.S. tariff rate at 14.1 percent, the highest in decades. While President Trump has instituted a 10-percent general tariff along with China-specific tariffs, and targeted tariffs on some individual goods, his country-specific 'reciprocal' tariffs have been paused until Aug. 1 as trade negotiations continue. Import prices advanced by 0.1 percent in June and deflated by 0.2 percent relative to last year, the Labor Department reported Thursday. The number was below economists' expectations and reflected lower energy prices. Fuel import prices slid by 0.7 percent last month after dropping 5 percent during the previous month amid rising tensions and conflict in the Middle East. West Texas Intermediate crude oil is down more than 10 percent on the month. Taking out fuel and food imports, core import prices increased by 0.2 percent in June after rising 0.1 percent in May. The U.S. dollar is also losing value now relative to other currencies, having fallen about 9 percent since the beginning of the year amid President Trump's trade war. Economists say the weaker dollar could boost inflation. 'Since the Trump administration began imposing tariffs, the dollar has depreciated, which could lead to a larger pass-through from tariffs to consumer prices,' Michael Pearce, deputy chief U.S. economist at Oxford Economics, told the Reuters news agency. 'A weaker dollar boosts the likelihood that firms pass on a larger share of tariffs.'
CTV News
09-07-2025
- CTV News
LaSalle police report 380% spike in impaired driving investigations in 2024
The LaSalle Police Service's 2024 Annual Report reveals a significant jump in impaired driving investigations last year, with 87 reported occurrences compared to 18 the year before — a more than fourfold increase. LaSalle police previously told AM800 that the increase is due to the way impaired investigations are recorded. The release of the report coincides with Chief Michael Pearce's first full year in the role, after his appointment in July 2023. The report credits him with bringing 'fresh insights' and a focus on modernization. In total, police made 137 arrests and laid 311 charges throughout the year. Domestic-related calls accounted for 204 occurrences and 39 charges, while theft from vehicles continued to be a recurring issue with 49 reports and 20 charges laid. Among the major investigations in 2024: A multi-jurisdictional 'grandparent scam' targeting seniors that resulted in more than $500,000 USD in losses. The seizure of 3D-printed firearm parts destined for a LaSalle address, leading to charges for firearm manufacturing. A Windsor drive-by shooting that led to charges against a LaSalle resident. The report also notes that policing costs came in roughly $458,000 over budget in 2024, due in part to high turnover, training obligations, and staffing coverage during complex investigations. The full report is being presented to council Tuesday night.
CTV News
08-07-2025
- CTV News
LaSalle police report 380% spike in impaired driving cases in 2024
The LaSalle Police Service's 2024 Annual Report reveals a significant jump in impaired driving investigations last year, with 87 reported occurrences compared to 18 the year before — a more than fourfold increase. LaSalle police previously told AM800 that the increase is due to the way impaired investigations are recorded. The release of the report coincides with Chief Michael Pearce's first full year in the role, after his appointment in July 2023. The report credits him with bringing 'fresh insights' and a focus on modernization. In total, police made 137 arrests and laid 311 charges throughout the year. Domestic-related calls accounted for 204 occurrences and 39 charges, while theft from vehicles continued to be a recurring issue with 49 reports and 20 charges laid. Among the major investigations in 2024: A multi-jurisdictional 'grandparent scam' targeting seniors that resulted in more than $500,000 USD in losses. The seizure of 3D-printed firearm parts destined for a LaSalle address, leading to charges for firearm manufacturing. A Windsor drive-by shooting that led to charges against a LaSalle resident. The report also notes that policing costs came in roughly $458,000 over budget in 2024, due in part to high turnover, training obligations, and staffing coverage during complex investigations. The full report is being presented to council Tuesday night.
Fashion Network
18-06-2025
- Business
- Fashion Network
Weak US retail sales, manufacturing output point to softening economy
"Tariff announcements have had a clear impact on the timing of large-ticket purchases, notably autos, but there are few signs yet that tariffs are leading to a general pullback in consumer spending," said Michael Pearce, deputy chief economist at Oxford Economics. "We expect a more marked slowdown to take hold in the second half of the year, as tariffs begin to weigh on real disposable incomes." Retail sales fell 0.9% last month, the largest decrease since January, after a downwardly revised 0.1% dip in April, the Commerce Department's Census Bureau said. The second straight monthly decline unwound the bulk of the tariff-driven surge in March. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, decreasing 0.7% after a previously reported 0.1% gain in April. They increased 3.3% year-on-year in May. Sales last month were also held down by lower receipts at service stations because of cheaper gasoline as the White House's protectionist trade policy has raised fears over global growth, restraining oil prices. But hostilities between Israel and Iran have boosted oil prices. A 25% duty on imported motor vehicles and trucks came into effect in April. Unseasonably cooler weather likely also hurt sales. Receipts at auto and parts dealerships tumbled 3.5%. Sales at building material and garden equipment and supplies dealers dropped 2.7%. Receipts at service stations fell 2.0%, while those at electronics and appliance stores slipped 0.6%. Sales at food services and drinking places, the only services component in the report, declined 0.9%. Economists view dining out as a key indicator of household finances. But online sales jumped 0.9%, while those at clothing retailers increased 0.8%. Furniture store sales soared 1.2%. Sporting goods, hobby, musical instrument and book store sales advanced 1.3%. Retail sales excluding automobiles, gasoline, building materials and food services increased 0.4% in May after an upwardly revised 0.1% fall in April. These so-called core retail sales, which correspond most closely with the consumer spending component of gross domestic product, were previously reported to have dropped 0.2% in April. Economists estimated that growth in consumer spending, which accounts for more than two-thirds of economic activity, was so far this quarter tracking at least a 2.0% annualized rate after slowing to a 1.2% pace in the first quarter. The Atlanta Fed is forecasting GDP rebounding at a 3.5% annualized rate in the second quarter. The anticipated surge will largely reflect a reversal in imports, which have fallen sharply as the frontloading of goods fizzled. The economy contracted at a 0.2% pace in the January-March quarter. Downside risks to consumer spending are, however, rising. The labor market is slowing, student loan repayments have resumed for millions of Americans and household wealth has been eroded amid tariff-induced stock market volatility. Economic uncertainty could lead to precautionary saving. "The outlook for consumer spending is cloudy," said Bill Adams, chief economist at Comerica Bank. Stocks on Wall Street fell. The dollar rose against a basket of currencies. U.S. Treasury yields fell. Economists said retailers likely offered discounts last month, adding that could explain part of the benign consumer price data in May. They, however, expected price pressures to build up in the month ahead. That thesis was supported by a separate report from the Labor Department's Bureau of Labor Statistics showing import prices, excluding fuels and food, increased 0.4% in May after advancing 0.5% in April. In the 12 months through May, the so-called core import prices increased 1.3%. Core import prices are being driven by dollar weakness, with the greenback down about 6.2% this year on a trade-weighted basis. Trump's aggressive trade posture has shaken investors' confidence in the dollar, eroding the appeal of U.S. assets. "This is another sign that inflation will pick up this summer and into the fall as prices start to reflect the higher costs for goods from enacted tariffs," said Ben Ayers, senior economist at Nationwide. A third report from the Fed showed manufacturing output edged up 0.1% in May, lifted by a 4.9% jump in motor vehicle and 1.1% rise in aerospace and miscellaneous transportation equipment production. That followed a 0.5% decline in April. But excluding motor vehicles, factory output fell 0.3% amid declines in fabricated metal products, machinery and nonmetallic mineral products. There was also a steep decrease in energy nondurable consumer goods production. Manufacturing, which accounts for 10.2% of the economy, relies heavily on imported raw materials. Trump has defended the duties as necessary to revive a long-declining U.S. industrial base, but economists say that cannot be accomplished in a short period of time, citing high production and labor costs as among the challenges. "Continued uncertainty around where trade policy will ultimately land is preventing many businesses from taking on new capital expenditures, unsure of the policy and underlying demand environment," said Shannon Grein, an economist at Wells Fargo. "We expect manufacturing to continue to tread water in the months ahead."
Fast Company
17-06-2025
- Business
- Fast Company
U.S. retail sales drop in May after a tariff-fueled surge
U.S. retail sales dropped more than expected in May, weighed down by a decline in motor vehicle purchases as a rush to beat potential tariff-related price hikes ebbed, but consumer spending remains supported by solid wage growth for now. The largest decline in sales in four months reported by the Commerce Department on Tuesday added to moderate job growth last month in suggesting that domestic demand was softening. That was reinforced by other data showing production at factories, outside motor vehicle assembly, decreased in May. President Donald Trump's aggressive and often shifting tariff position has heightened economic uncertainty, making it difficult for businesses to plan ahead. Federal Reserve officials meeting on Tuesday and Wednesday are expected to leave the U.S. central bank's benchmark overnight interest rate unchanged in the 4.25%–4.50% range while monitoring the fallout from the import duties and rising tensions in the Middle East. 'Tariff announcements have had a clear impact on the timing of large-ticket purchases, notably autos, but there are few signs yet that tariffs are leading to a general pullback in consumer spending,' said Michael Pearce, deputy chief economist at Oxford Economics. 'We expect a more marked slowdown to take hold in the second half of the year, as tariffs begin to weigh on real disposable incomes.' Retail sales fell 0.9% last month, the largest decrease since January, after a downwardly revised 0.1% dip in April, the Commerce Department's Census Bureau said. The second straight monthly decline unwound the bulk of the tariff-driven surge in March. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, decreasing 0.7% after a previously reported 0.1% gain in April. They increased 3.3% year-on-year in May. Sales last month were also held down by lower receipts at service stations because of cheaper gasoline as the White House's protectionist trade policy has raised fears over global growth, restraining oil prices. But hostilities between Israel and Iran have boosted oil prices. A 25% duty on imported motor vehicles and trucks came into effect in April. Unseasonably cooler weather likely also hurt sales. Receipts at auto and parts dealerships tumbled 3.5%. Sales at building material and garden equipment and supplies dealers dropped 2.7%. Receipts at service stations fell 2.0%, while those at electronics and appliance stores slipped 0.6%. Sales at food services and drinking places, the only services component in the report, declined 0.9%. Economists view dining out as a key indicator of household finances. But online sales jumped 0.9%, while those at clothing retailers increased 0.8%. Furniture store sales soared 1.2%. Sporting goods, hobby, musical instrument and book store sales advanced 1.3%. Retail sales excluding automobiles, gasoline, building materials and food services increased 0.4% in May after an upwardly revised 0.1% fall in April. These so-called core retail sales, which correspond most closely with the consumer spending component of gross domestic product, were previously reported to have dropped 0.2% in April. Downside risks mounting Economists estimated that growth in consumer spending, which accounts for more than two-thirds of economic activity, was so far this quarter tracking at least a 2.0% annualized rate after slowing to a 1.2% pace in the first quarter. The Atlanta Fed is forecasting GDP rebounding at a 3.5% annualized rate in the second quarter. The anticipated surge will largely reflect a reversal in imports, which have fallen sharply as the frontloading of goods fizzled. The economy contracted at a 0.2% pace in the January–March quarter. Downside risks to consumer spending are, however, rising. The labor market is slowing, student loan repayments have resumed for millions of Americans and household wealth has been eroded amid tariff-induced stock market volatility. Economic uncertainty could lead to precautionary saving. 'The outlook for consumer spending is cloudy,' said Bill Adams, chief economist at Comerica Bank. Stocks on Wall Street fell. The dollar rose against a basket of currencies. U.S. Treasury yields fell. Economists said retailers likely offered discounts last month, adding that could explain part of the benign consumer price data in May. They, however, expected price pressures to build up in the month ahead. That thesis was supported by a separate report from the Labor Department's Bureau of Labor Statistics showing import prices, excluding fuels and food, increased 0.4% in May after advancing 0.5% in April. In the 12 months through May, the so-called core import prices increased 1.3%. Core import prices are being driven by dollar weakness, with the greenback down about 6.2% this year on a trade-weighted basis. Trump's aggressive trade posture has shaken investors' confidence in the dollar, eroding the appeal of U.S. assets. 'This is another sign that inflation will pick up this summer and into the fall as prices start to reflect the higher costs for goods from enacted tariffs,' said Ben Ayers, senior economist at Nationwide. A third report from the Fed showed manufacturing output edged up 0.1% in May, lifted by a 4.9% jump in motor vehicle and 1.1% rise in aerospace and miscellaneous transportation equipment production. That followed a 0.5% decline in April. But excluding motor vehicles, factory output fell 0.3% amid declines in fabricated metal products, machinery and nonmetallic mineral products. There was also a steep decrease in energy nondurable consumer goods production. Manufacturing, which accounts for 10.2% of the economy, relies heavily on imported raw materials. Trump has defended the duties as necessary to revive a long-declining U.S. industrial base, but economists say that cannot be accomplished in a short period of time, citing high production and labor costs as among the challenges. 'Continued uncertainty around where trade policy will ultimately land is preventing many businesses from taking on new capital expenditures, unsure of the policy and underlying demand environment,' said Shannon Grein, an economist at Wells Fargo. 'We expect manufacturing to continue to tread water in the months ahead.'
