Restraining emissions during a global economic expansion

<p>Kia ora,</p><p>Welcome to Friday's Economy Watch where we follow the economic events and trends that affect New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news climate controls are very much back on the international agenda, even if some say they are not enough yet.</p><p>They will be tougher to win given the economic recovery underway.</p><p>Last week there were 566,000 new <a href="https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/ui-claims/20210707.pdf" target="_blank"><strong>jobless claims</strong></a> in the US, lower than expected and lower than the prior week. Now there are 3,863,000 people on these benefits, and the good thing is that this decline is being driven primarily by rising employment and no longer just the expiry of benefit qualification.</p><p>Supporting that, the Chicago Fed is <a href="http://www.interest.co.nz/sites/default/files/embedded_images/cfnai-april2021-pdf.pdf" target="_blank"><strong>reporting</strong></a> its National Activity Index rose, and by more than was anticipated. There was a good economic rebound underway in March, making back the unexpected February weakness, and more. April factory activity in the Kansas City Fed region is <a href="https://www.kansascityfed.org/surveys/manufacturing-survey/tenth-district-manufacturing-activity-expanded-further/" target="_blank"><strong>very strong</strong></a>.</p><p>But some steam seems to have gone out of the residential real estate market in the US in March. Still, volumes sold were still +12% higher than a year ago, and prices rose, perhaps indicating the <a href="https://www.nar.realtor/newsroom/housing-market-reaches-record-high-home-price-and-gains-in-march" target="_blank"><strong>sales volume pullback from February</strong></a> is more related to a lack of supply than demand.</p><p>The US Treasury <a href="https://treasurydirect.gov/instit/annceresult/press/preanre/2021/R_20210422_3.pdf" target="_blank"><strong>auctioned US$21 bln</strong></a> o