US Economy Shows Mixed Signs as Factory Orders Rise Amid Weakness

The latest US economic data has shown mixed results, with factory orders rising but other indicators pointing to weakness. The Federal Reserve's Beige Book survey revealed modest growth in activity since early July, with ten of twelve districts reporting an increase and two showing no change. Consumer spending was slightly higher on balance, but car sales were subdued due to high fuel prices and financing costs.

The ADP monthly employment report showed a gain of 38,000 jobs in August, lower than expected, while the US non-farm payrolls report is due out Saturday with an expected gain of 58,000. The UST 10yr yield rose to 4.79%, and gold prices firmed at $4372/oz.

The Bank of Canada kept its policy interest rate at 2.25% as expected, but expressed surprise at the resilience of the Canadian economy despite economic attacks from the US. The RBA in Australia has downgraded the US dollar allocation for foreign currency holdings and released Q2-2026 economic activity data showing a +0.4% expansion.