Canada Economy Unexpectedly Stalls in October


mentalfloss
#1
Unexpectedly lol


Canada Economy Unexpectedly Stalls in October on Factory Drop

Canada’s gross domestic product unexpectedly stalled in October, another sign the economy is struggling to recover from an oil-price shock.

Output was little changed at an annualized C$1.64 trillion ($1.18 trillion) compared with September, when the economy contracted 0.5 percent, the most since March 2009, Statistics on Canada said Wednesday from Ottawa. Economists surveyed by Bloomberg predicted a 0.2 percent October expansion.

Non-conventional oil extraction rose 4.5 percent in October following a 10.6 percent drop in September when fires and maintenance shutdowns interrupted production. Public sector output rose 0.2 percent on the month.

The list of shrinking industries was much longer. Manufacturing fell by 0.3 percent led by food and plastics. The output of utilities declined by 1.4 percent. Retail fell by 0.4 percent and the 0.1 percent decline in wholesaling was the fourth straight.

Today’s report also showed a 0.4 percent decline in transportation and warehousing and a 0.1 percent fall in construction.

Investors are increasing bets Bank of Canada Governor Stephen Poloz will cut his 0.5 percent interest rate as oil prices hit new lows and growth in many other industries remains fails to take up the slack.

“There are a lot of headwinds to the Canadian economy right now,” Bruce Cooper, chief investment officer of the asset management arm of Toronto-Dominion Bank, said in a Dec. 18 interview with Pamela Ritchie on Bloomberg TV Canada. “There’s no silver bullet they can fire that will re-ignite the Canadian economy” at the Bank of Canada, he said.

Economists surveyed by Bloomberg already predict fourth-quarter growth will lag the central bank’s forecast for an annualized gain of 1.5 percent. The survey’s median estimate is for a 1.1 percent increase.

Falling commodity prices have led to production or job cuts at companies from Potash Corp. of Saskatchewan, Devon Energy Corp. and Meg Energy Corp.

At the same time, manufacturers are struggling to reap the full benefit of the Canadian dollar’s 17 percent decline this year and increasing demand from the U.S.

Economists surveyed by Bloomberg predict growth slowed to
1.2 percent this year from 2.5 percent in 2014. Canadians will have to wait for at least two years before growth returns to where it was before the drop in oil prices -- consensus is for 1.8 percent in 2016 and 2.1 percent in 2017.

Sluggish economic growth was a key topic of a meeting of Canada’s provincial and federal finance ministers this week, and included a private briefing from Governor Poloz.

“While we have some reason for optimism, it’s cautious optimism,” Bill Morneau, the federal minister, told reporters Dec. 21 when asked about Poloz’s briefing.
Before it's here, it's on the Bloomberg Terminal.

Canada Economy Unexpectedly Stalls in October on Factory Drop - Bloomberg Business
 
taxslave
Free Thinker
+1
#2
Must be Dutch Disease.
 
captain morgan
No Party Affiliation
+3
#3  Top Rated Post
I don't know what all the fuss is about, after all, we all know that budgets balance themselves
 
taxslave
Free Thinker
#4
So does economic output.
 
captain morgan
No Party Affiliation
#5
Ya see?... Everything will be okey-dokey... They all take care of themselves eventually
 
mentalfloss
#6
Quote: Originally Posted by captain morgan View Post

I don't know what all the fuss is about, after all, we all know that budgets balance themselves

Evidently according to Harper.
 
captain morgan
No Party Affiliation
#7
Nice comeback.... All the 7 year olds will be ever so impressed
 
mentalfloss
#8
They certainly have a better memory of Harpernomics than you do.
 
captain morgan
No Party Affiliation
+1
#9
Another gem... You must be a real hit with the kindergarten crowd
 
taxslave
Free Thinker
+1
#10
Quote: Originally Posted by mentalfloss View Post

Evidently according to Harper.

That is trudOwe's line. You know, the guy that turned a 2 billion surplus into a 3 billion defecit in less than a month in power.
 
Ludlow
No Party Affiliation
#11
There' s always gonna be highs and lows dummy. In the good times it's prime rib and the expensive stuff. In the low times it's beans and taters. Live with it and stop lookin to complain all the days of yer fawkin life. .
 
captain morgan
No Party Affiliation
#12
Quote: Originally Posted by Ludlow View Post

There' s always gonna be highs and lows dummy. .

Within less than 1 week of taking power?

....Really?

PS - I have a bridge to sell ya... Cheap... Good deal... Really!

PPS -
 
damngrumpy
No Party Affiliation
-1
#13
Unexpected I don't think so the Canadian people knew it was coming the Tories
lied right up to the last day of the campaign. It will get worse too before it gets
better.
 
mentalfloss
#14
Quote: Originally Posted by taxslave View Post

That is trudOwe's line. You know, the guy that turned a 2 billion surplus into a 3 billion defecit in less than a month in power.

It's Trudeau's line but Harper's legacy.