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North America Weekly

U.S.: Back to Fed Watching and Japanese Intervention; Canada: Deteriorating Household Balance Sheets

EXECUTIVE SUMMARY

Figures released last week showed a weak gain in industrial production in August, while auto production declined. September’s manufacturing surveys continue to reflect the slowdown in manufacturing activity and in the plans for capital outlays—which support our forecast for a slower pace of capital investment in H2, as highlighted in our U.S. September Outlook update. We expect the labor market to reflect the slowdown in business activity: recent improvements in claims should be interpreted cautiously, given the Labor Day holiday.  Meanwhile, heavy discounts, also[...]

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