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Canadian economy exceeds growth expectations

But cooling housing market and high household debt may slow service sector growth


 

Statistics Canada is reporting the Canadian economy recorded its strongest performance in eight months in November, growing 0.4% on a month-over-month basis. This gain exceeded market expectations, and was the result of a strong performance by the services sector, as well as oil and gas drilling. Analysts said the rise in November output bodes well for a final fourth-quarter GDP annualized growth reading of 2.3%, which would match the Bank of Canada’s forecast. Other sectors did not do as well: manufacturing was on the decline, and construction also decreased. The Canadian dollar gained modestly after the data release, while yields on Canadian bonds increased slightly. “It’s a good number and going forward December’s GDP is expected to be supported by a significant recovery in manufacturing, which tends to suggest that Canada will exit 2010 while not necessarily like a lion, but some sort of domesticated feline nonetheless,” said Stewart Hall, economist at HSBC Securities Canada. TD economists believe this resurgence in the services sector may be short-lived: consumer demands appear to be cooling, and more stringent mortgage insurance rules may dampen the housing market and slow growth in the service sector and construction output through 2011.

National Post


 
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Canadian economy exceeds growth expectations

    • Time will tell.

      One thing is for sure though, you and the other die hard Liberals will be wishing for the worst possible news.

      • I'm not any kind of Liberal I'm afraid, much less a die-hard one.

        But nobody has to 'wish for' bad news….just reading the financial reports from around the world tells you what's going on.

    • It's not a "mistake" when Stats Canada revises its initial reports. It is part of the standard process for reconciling information and providing accurate information. All reports of employment, growth, etc, are always identified as preliminary when first released. They are almost always revised upwards or downwards in subsequent reports as more information is gathered. The same process is followed in other countries that have similare objective reporting agencies.

      • Yada, yada Mike

  1. UH OH ! – this is the last thing Iggy needs to hear – I almost feel sorry for the Liberal party of Toronto right now – yes, yes, yes :)

  2. UH OH ! – this is the last thing Iggy needs to hear – I almost feel sorry for the Liberal party of Toronto right now – yes, yes, yes :)

  3. Time will tell.

    One thing is for sure though, you and the other die hard Liberals will be wishing for the worst possible news.

  4. I'm not any kind of Liberal I'm afraid, much less a die-hard one.

    But nobody has to 'wish for' bad news….just reading the financial reports from around the world tells you what's going on.

  5. I hope that the Bank of Canada does not decide to start raising interest rates again because of this unexpected strength.

  6. It's not a "mistake" when Stats Canada revises its initial reports. It is part of the standard process for reconciling information and providing accurate information. All reports of employment, growth, etc, are always identified as preliminary when first released. They are almost always revised upwards or downwards in subsequent reports as more information is gathered. The same process is followed in other countries that have similare objective reporting agencies.

  7. Yada, yada Mike

  8. Incumbrance and the Domino Affect.
    Recent news regarding higher debt load for Canadian families spells a dismal economic forecast for 2011 and beyond. More disconcerting than reported. If this very important economic measure isn't addressed immediately it can plunge Canada into a very deep recession by the end of 2011. A U.S. Main Street style bail out plan will avert economic catastrophe for Canada if it's implemented immediately. Most importantly before banks are forced to foreclose on unprecendented billions in mortgage loans. Canadians shouldn't be fooled into believing that a U.S. type recession cannot occur here. It's genesis is already actualized. The first domino is teetering.

  9. Incumbrance and the Domino Affect.
    Recent news regarding higher debt load for Canadian families spells a dismal economic forecast for 2011 and beyond. More disconcerting than reported. If this very important economic measure isn't addressed immediately it can plunge Canada into a very deep recession by the end of 2011. A U.S. Main Street style bail out plan will avert economic catastrophe for Canada if it's implemented immediately. Most importantly before banks are forced to foreclose on unprecendented billions in mortgage loans. Canadians shouldn't be fooled into believing that a U.S. type recession cannot occur here. It's genesis is already actualized. The first domino is teetering.

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