Many countries, including Canada have officially declared their economy to be in a recession. Companies trying to operate under the umbrella this crisis can struggle to manage short and long-term strategies.
To help better understand the state of the North American economies we collected a series of key indicators. This dashboard provides a glimpse into the Canadian and U.S. economies to help guide your marketing decisions.
U.S. Consumer Price Index (CPI)
The CPI is a measure of the average monthly change in the price for goods and services paid by consumers between any two time periods. This index represents roughly 90 percent of the total population.
The CPI is based on prices for food, clothing, shelter, and fuels; transportation fares; service fees and sales taxes. To calculate the index, price changes are averaged with weights representing their importance in the spending of the particular group.
The CPI can be used to recognize periods of inflation and deflation. Significant increases in the CPI within a short time frame might indicate a period of inflation, and significant decreases in CPI within a short time frame might indicate a period of deflation. However, because the CPI includes volatile food and oil prices, it might not be a reliable measure of inflationary and deflationary periods.
Canada Consumer Price Index (CPI)
U.S. Gross Domestic Product (GDP)
Gross domestic product (GDP) is the value of the goods and services produced by the U.S. economy less the resources used up in production. GDP is also equal to the sum of personal consumption expenditures, gross private domestic investment, net exports of goods and services, and government consumption expenditures and gross investment.
Canada Gross Domestic Product (GDP)
U.S. Unemployment Rate
The unemployment rate represents the number of unemployed U.S. workers as a percentage of the labor force. Labor force data are restricted to people 16 years of age and older, who currently reside in the United States.
Industrial Production Index
The Industrial Production Index (INDPRO) measures real output for all facilities located in the United States manufacturing, mining, and electric, and gas utilities.
The index is compiled on a monthly basis to bring attention to short- term changes in industrial production. Growth in the production index from month to month is an indicator of growth in the industry.
There are two indicators that measure the amount of money that is being held within the households of the United States, Money 1(M1) and Money 2 (M2).
M1 money is a country’s basic money supply that’s used as a medium of exchange. M1 includes deposits and checking accounts, which are the most commonly used exchange mediums through the use of debit cards and ATMs. M1 money is the supply metric most frequently utilized by economists to reference how much money is in circulation in a country.
M2 money includes M1 money plus a broader set of financial assets held principally by households including; savings deposits, balances in retail money market mutual funds – essentially anything that is liquid but not cash.
The M2 number is critical as it identifies the current money supply and is used to forecast economic influences such as inflation and interest rates.
Case-Schiller Home Price Index
The Case-Shiller National Home Price Index is the leading measure of U.S. residential real estate prices.
Why is this index important? Home prices are one of the key indicators of the health of an economy. But is also important because for most people, their home is their single largest asset and home prices have a significant impact on the value of their portfolio.
Survive and Thrive -
B2B Marketing Strategies to Position Your Company for Growth In a Recession
The Quake Marketing Group has been working in B2B manufacturing and industrial marketing for over 20 years. During that time have worked through some difficult economic times. We have learned what to do to maintain a brand and even position yourself for growth when the recession is over.
There is no one strategy that works for every company, so we have created a guide to help you navigate the difficult times and prepare yourself for for growth in the future.
Download your FREE copy of Survive and Thrive – B2B Marketing Strategies to Position Your Company for Growth in a Recession today.
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