Economy
Canadian GDP Flat in July
Written by Sandy Williams
September 30, 2014
The Canadian economy was flat in July following six months of gains according to data released by Statistics Canada on Sept. 30, 2014. GDP growth was unchanged, failing to meet economist forecasts of 0.2 to 0.3 percent growth.
Manufacturing output grew by 1 percent. Durable goods rose 1.6 percent with notable increases in transportation equipment, computer and electronic products. Non-durable goods manufacturing increased by 0.4 percent. Manufacture of chemical, petroleum and coal products fell.
The public sector rose by 0.6 percent due to gains in educational services. Construction, bolstered by residential building and repair grew 0.4 percent.
The small gains in July were offset by declines in energy and utilities. Mining, quarrying and oil and gas extraction fell 1.5 percent while utilities dropped 2.3 percent.
Following the GDP report on Tuesday, the Canadian dollar weakened to 89.27 U.S. cents. Interest rates have been steady at 1 percent since September 2010, but economists are expecting Bank of Canada to begin raising rates in mid-2015.
“The latest GDP data suggests that the economy had less underlying momentum at the start of this quarter than most had expected,” said David Madani of Capital Economics. “Accordingly, this reinforces our view that the Bank of Canada will be in no hurry to raise interest rates anytime soon.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Trump taps Lutnick to be Commerce Secretary
President-elect Donald Trump has named Wall Street veteran Howard Lutnick as the new US Secretary of Commerce.
New York state manufacturing activity ramps up to multi-year high
New York state’s manufacturing sector saw substantial recovery in November, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
CRU: Dollar and bond yields rise, metal prices fall as Trump wins election
Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.
ISM: Manufacturing index fell in Oct to lowest point of ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.
Chicago Business Barometer slips in October
The Chicago Business Barometer fell to a five-month low in October and continues to indicate deteriorating business conditions, according to Market News International (MNI) and the Institute for Supply Management (ISM).