Canada's economy 'humdrum' in face of weak investment


mentalfloss
#1


Canada's economy 'humdrum' in face of weak investment

Canada’s business sector is holding back on investment and governments are in restraint mode, leading to a “humdrum” outlook for the Canadian economy, the Conference Board of Canada says in its latest Canadian outlook.

At the same time, working Canadians experienced weak income growth and are facing higher inflation, meaning they cannot stimulate the economy by spending, the report says.

"The unusually cold winter got economic growth to a slow start this year, but that's not all that is ailing the Canadian economy," said Glen Hodgson, senior vice-president and chief economist at the Conference Board.

"Overall, the domestic economy remains lethargic. The business sector seems to be holding back on hiring and investment, governments are by and large in restraint mode, and households are seeing their purchasing power erode."

2% GDP growth

It all adds up to GDP growth of just two per cent this year, with the domestic economy, which is powered by business investment and household spending, expanding by just 1.3 per cent, the think-tank said in a report released Tuesday.

But it sees greater momentum in the economy in 2015, after the U.S. rebounds toward the end of this year. Real GDP growth in the U.S. is expected to hit 2.3 per cent for the year.

The Conference Board forecast is lower than the Bank of Canada’s prediction that the Canadian economy will grow 2.2 per cent to 2.4 per cent this year.

The Bank of Canada could have lowered interest rates in the face of a weaker economy, the Conference Board said, but a recent uptick in inflation seems to work against any prospect of lower rates. Higher rates likely won’t come until 2015, in line with the U.S. Federal Reserve's plan for rates, the report said.

Its report forecasts business investment will stay on hold until 2015. It sees weakness in energy investment, which has helped power the Canadian economy for most of the past 10 years, because of uncertainty over pipeline projects and LNG projects.

Low commodity prices, especially soft metal and mineral prices, are also blocking further investment in the mining sector.

Manufacturing is doing little to pick up the slack, with growth of just 1.8 per cent this year in office, manufacturing and warehousing investments.

Canada's economy 'humdrum' in face of weak investment - Business - CBC News
 
mentalfloss
#2
Canada posts tiny jobs gain in July as employment growth stalls | Canada | Reuters (external - login to view)
 
captain morgan
Bloc Québécois
+1
#3  Top Rated Post
Canada Post is a dead duck.

Economy is in super overdrive out West
 
petros
+1
#4
All the road construction is annoying sometimes but nice when done.
 
captain morgan
Bloc Québécois
+1
#5
I like new roads.

I think Flossy is against them... They cause global warming
 
Locutus
+1
#6
Quote: Originally Posted by captain morganView Post

I like new roads.

I think Flossy is against them... They cause global warming

people like him dig really warm roads when they're built and managed by shiny pony construction though. bet the farm on that.
 
petros
#7
Roads are bitumen.
 
coldstream
#8
Free Trade.. it's been a disaster and there's no where to go but down from here. In fact the figures have been tweeked to make things look rosier than they are, by incorporating futile, non productive and illusory economic 'activity' into the GDP.. and it still looks bleak.
 
Locutus
#9
nobody cares about canada post.

Canada will be fine despite our detractors and inside haters.
 
mentalfloss
#10
Poop.


OTTAWA (Reuters) - Canada's economy created a net 200 jobs in July, far fewer than analysts had expected, while labor force participation fell to a fresh 13-year low, the country's statistical agency reported on Friday.

The data confirmed the general sluggishness that has marked Canada's labor market in recent quarters and reinforced expectations the Bank of Canada is unlikely to raise interest rates any time soon.

Part-time employment rose by 60,000 jobs last month, while full-time jobs fell by 59,700, according to Statistics Canada. Analysts had forecast a net gain of 20,000 jobs after the loss of 9,400 positions in June.

"It highlights a very disappointing pace of job gains in Canada," said Camilla Sutton, Scotiabank's chief currency strategist, who described the drop in full-time employment as "shocking."


Canada's job growth stalls; labor participation at 13-year low | Canada | Reuters (external - login to view)
 
captain morgan
Bloc Québécois
#11
Quote: Originally Posted by mentalflossView Post

Poop.


OTTAWA (Reuters) - Canada's economy created a net 200 jobs in July, far fewer than analysts had expected, while labor force participation fell to a fresh 13-year low, the country's statistical agency reported on Friday.

The data confirmed the general sluggishness that has marked Canada's labor market in recent quarters and reinforced expectations the Bank of Canada is unlikely to raise interest rates any time soon.

Part-time employment rose by 60,000 jobs last month, while full-time jobs fell by 59,700, according to Statistics Canada. Analysts had forecast a net gain of 20,000 jobs after the loss of 9,400 positions in June.

"It highlights a very disappointing pace of job gains in Canada," said Camilla Sutton, Scotiabank's chief currency strategist, who described the drop in full-time employment as "shocking."


Canada's job growth stalls; labor participation at 13-year low | Canada | Reuters (external - login to view)

Economy is in super overdrive out West

"Alberta's labour market improved significantly between the second quarter of 2013 and 2014 with employment rising by 75,100 (+3.4%)."
Labour Market Bulletin - Alberta: July 2014 (external - login to view)

I'm guessing that Saskatchewan posted similar gains
 
mentalfloss
#12
This thread is about the country of Canada, not the country of Alberta.
 
captain morgan
Bloc Québécois
#13
Use your head bud.

First off, chances are that the official numbers for July 2014 aren't in yet... However, if you insist on going that direction, does it really make sense that one province could post such gains on a YTD basis and really believe that the entire nation produced only 200 jobs in the Month of July?

Think before you open your pie-hole man!
 
mentalfloss
#14
If you really want to separate from Canada just mail your local MP.
 
petros
#15
Quote: Originally Posted by mentalflossView Post

This thread is about the country of Canada, not the country of Alberta.

It's fine here too and we're not AB and oil isn't our bread and butter.

Sask. unemployment rate lowest in nearly 40 years | CTV Regina News (external - login to view)
 
captain morgan
Bloc Québécois
#16
Quote: Originally Posted by mentalflossView Post

If you really want to separate from Canada just mail your local MP.

Let me say it again for ya'll champ:

Use your head bud.

First off, chances are that the official numbers for July 2014 aren't in yet... However, if you insist on going that direction, does it really make sense that one province could post such gains on a YTD basis and really believe that the entire nation produced only 200 jobs in the Month of July?

Think before you open your pie-hole man!
 
petros
#17
July numbers are out. 6200 jobs since July 2013 in SK.

Statistics Canada says the unemployment rate in Saskatchewan fell to the lowest level in nearly 40 years last month.
A decline in labour force participation pushed the province’s unemployment rate down 0.6 per cent to 3.3 per cent in July, the agency said Friday.
That’s the lowest unemployment rate recorded in Saskatchewan since comparable data became available in 1976.
Regina’s unemployment rate was 3.5 per cent in July, while the jobless rate in Saskatoon was slightly higher at 3.6 per cent.
Employment in the province was up by 6,200, an increase of 1.1 per cent compared to a year earlier
 
Tonington
#18
Quote: Originally Posted by captain morganView Post

Let me say it again for ya'll champ:

Use your head bud.

First off, chances are that the official numbers for July 2014 aren't in yet... However, if you insist on going that direction, does it really make sense that one province could post such gains on a YTD basis and really believe that the entire nation produced only 200 jobs in the Month of July?

Think before you open your pie-hole man!

It's true that employment numbers are often adjusted afterwards, even the official estimates are, but as far as the two being conflicting? Why would that be out of the question? Is Ontario creating a lot of jobs, or losing jobs? How about the rest of the provinces? Of course, you're also comparing one years growth in a booming job market to one months change in a huge country with wildly varying job markets by geographic region. Alberta and Saskatchewan, lots of resources, and lots of jobs available. But the entire country, that's a different story.
 
petros
#19
Ontario has resources so what is their excuse? SK is very diverse far beyond resources. What attracts investment away from ON to SK and AB?
 
Tonington
#20
If an investment moves from Ontario to Alberta, does it mean more jobs in Canada? Maybe. You missed the point.
 
petros
#21
I never said anything about moved but investment lured away. We have growth across the board in all sectors. Why?
 
mentalfloss
#22
Canada’s biggest banks get rating outlooks cut to negative by S&P | Financial Post (external - login to view)
 
captain morgan
Bloc Québécois
#23
Economy is in super overdrive out West
 
mentalfloss
#24
Let me know when the west becomes a country.
 
captain morgan
Bloc Québécois
#25


It must really hurt you coming to the understanding that the West is in high gear
 
mentalfloss
#26
Yea it hurts so much.

 
petros
#27
Poor kid.
 
Machjo
#28
Quote: Originally Posted by coldstreamView Post

Free Trade.. it's been a disaster and there's no where to go but down from here. In fact the figures have been tweeked to make things look rosier than they are, by incorporating futile, non productive and illusory economic 'activity' into the GDP.. and it still looks bleak.

Are you proposing that the provinces stop trading with one another?
 
petros
#29
Quote: Originally Posted by mentalflossView Post

Let me know when the west becomes a country.

A little more everyday.. That's what less and less Fed oversight brings. Provinces have far more power than they used to creeping towards what it once was, each Province solving it's own problems and paying it's own bills.
 
mentalfloss
#30
So you want the provinces to separate then.

That's not very Canadian of you.
 

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