(November 12 – 12:20 ET) – Call Sherry Cooper a Kudlow convert. Nesbitt Burns’ chief economist seems to be accepting the economic vision of notorious bull and Schroeder’s chief economist, Lawerence Kudlow. He argues that the U.S. has entered a new era of high productivity with low inflation.
In her commentary on today’s U.S. retail sales data Cooper says, “Today’s U.S. economic releases add another jewel to the crown of evidence that the new paradigm is in full flight.” Cooper is looking at U.S. productivity growth – charging ahead at a 4.2% annual rate while unit labour costs are only advancing at a 1.7% annual rate.
Economists at CIBC World Markets tend to agree. Today’s report fuels the “new paradigm” argument, they say, but they expect a rate increase, nonetheless, next week. “The reports were bullish for non-auto retail stocks and the equity market in general, with strong productivity a key to bottom line improvements.”
-IE Staff
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