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Canada’s economy contracted during 2nd quarter, StatsCan says

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The Canadian economy appeared to stall in the second quarter as investment in housing continued to fall, led by a drop in new construction.

Statistics Canada said Friday the economy contracted at an annualized rate of 0.2 per cent in the second quarter.

The agency also revised its reading for growth in the first quarter to an annual pace of 2.6 per cent, down from 3.1 per cent.

The decline in the second quarter came as housing investment fell 2.1 per cent to post its fifth consecutive quarterly decrease. New construction dropped 8.2 per cent in the quarter, while renovation spending also fell 4.3 per cent.

The drop in spending came as Canadians face higher borrowing costs fuelled by interest rate hikes by the Bank of Canada, which is trying to bring inflation back to its target of two per cent.

The weakness in the second quarter was also attributed to lower inventory accumulations, as well as slower growth in exports and household spending.

Exports of goods and services crept up 0.1 per cent in the second quarter compared with a 2.5 per cent increase in the first quarter.

Growth in real household spending slowed to 0.1 per cent in the second quarter compared with 1.2 per cent in the first quarter.

Good news that consumer spending has slowed: economist

Pedro Antunes, chief economist at the Conference Board of Canada, said it came as a surprise that the economy had stalled.

The Bank of Canada had expected a 1.5 per cent annualized GDP growth, while analysts had forecast a 1.2 per cent gain.

“We had been thinking the economy might be a little stronger than what it finally came in at. I think that’s actually good news,” he said, adding that it appears the central bank’s tightened monetary policy is slowing consumer spending.

“Personally I think that we should hold off on any further rate hikes,” Antunes said.

“The Bank of Canada is playing a difficult game here. It’s not just about raising rates. It’s about expectations and about kind of driving the message that [the bank] is going to be forceful on this issue.

Construction manager says fewer homes being built

The hardest hit sectors are retail and wholesale — industries that cater to households and offices. According to Antunes, the slowdown in construction is somewhat concerning, but not surprising.

“We are trying to build more homes for, yes, essentially that very strong population growth that we’re going through right now. [But] it’s not unexpected given the fact that we’ve raised interest rates so drastically.”

Colin Snaith, a senior manager with SG Constructors, said that construction projects are seeing the effects of higher interest rates.

“We’ve definitely seen a reduction in the number of homes being built, particularly in the high-rise sector,” Snaith told CBC News during an interview at a building site in Toronto.

“Our industry thankfully has remained quite busy, but that’s due to the fact that a lot of the projects ongoing right now have been started before the interest rates took effect.”

Two workers are shown on a construction site.
A residential and commercial construction site is shown near the Longueuil metro station in Quebec on Aug. 8. Statistics Canada says the economy contracted in the second quarter of this year. (Ivanoh Demers/CBC/Radio-Canada)

Snaith said there is a large backlog of construction projects that were scheduled to start soon — but many of their start dates have been pushed back, with the pre-construction period extended.

“I think everyone’s just being more cautious with their dollar right now,” he added.

“A lot of the time, financing is tied to condo sales and home sales are down right now. Everyone’s just waiting for interest rates to stabilize.

Early estimates suggest real GDP unchanged in July

Meanwhile, business investment in non-residential structures gained 2.4 per cent in the second quarter, boosted by a 3.3 per cent gain in spending on engineering structures.

The overall pullback in the second quarter came as the economy contracted by 0.2 per cent in June.

Services-producing industries dropped 0.2 per cent in June, while goods-producing industries contracted 0.4 per cent.

Statistics Canada also said its early estimate for July suggested real GDP was essentially unchanged for the month, though it cautioned the figure would be updated.

The report comes ahead of the Bank of Canada’s latest interest rate decision, set for next Wednesday.

The central bank raised its key interest rate target by a quarter of a percentage point to five per cent in July, saying it remained concerned that progress toward its two per cent inflation target could stall.

 

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Supply shortage for Ontario home care, palliative patients unacceptable: minister

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TORONTO – Ontario Health Minister Sylvia Jones says it is unacceptable that home care and palliative patients in the province are facing shortages of supplies they need, and she is working to have it rectified.

NDP Leader Marit Stiles asked Jones about the issue in question period today, saying doctors are reporting that patients are being sent to emergency rooms because their supplies have run out, patients in palliative care are unable to get sedatives and people facing life-threatening infections are without proper sanitary supplies.

Jones says she has been working with Ontario Health atHome on what she calls a logistics issue.

She says she has directed the agency to reimburse any patient, family or clinician who has paid out of pocket for necessary equipment.

Ontario Health atHome says in a statement that it has new supply contracts as of Sept. 24 and it is doing everything possible to stabilize the delivery of critical medical items.

The Hamilton Spectator has reported that other effects of the shortages have included a patient with a brain injury going 15 hours without sedation medication, a young immunocompromised patient going 36 hours without antibiotics and a patient getting a bone infection after wound care supplies were not delivered.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.



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CAFA gala names Beaufille, Spencer Badu this year’s top fashion designers

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TORONTO – The Canadian Arts & Fashion Awards have crowned Beaufille and Spencer Badu this year’s top fashion designers.

Beaufille, founded and designed by sisters Chloé and Parris Gordon, was named womenswear designer of the year while Spencer Badu was declared top menswear designer at a weekend gala.

The accessory designer of the year award went to Maguire while Nobis earned top outerwear brand.

CAFA president Vicky Milner announced a new award called the Indigenous Fashion Award, to recognize the talent and creativity of Indigenous designers, brands and artisans.

Milner said the organization wants to foster “a vibrant ecosystem that honours tradition while embracing innovation and business development opportunities.”

The event also saw supermodel Linda Evangelista receive the vanguard award and Ben Barry, Dean of Fashion at New York’s Parsons School of Design, collect a changemaker award.

Other honours included a changemaker award for sisters Justice Faith and Nia Faith for their efforts to empower young people, and the outstanding achievement award for lifestyle brand Roots.

Here’s a look at the other winners:

Emerging Talent, Fashion: Jontay Kahm

Emerging Talent, Accessories: Steff Eleoff

Fashion Design Student Award: Tia Kureshi

Image Maker of the Year: Richard Bernardin

Stylist of the Year: Amber Watkins

Fresh Face of the Year: Dalton Dubois

Model of the Year: Mathieu Simoneau

Fashion Impact Award: Vanja Vasic, Fashion Art Toronto

Digital Fashion Creator of the Year: Mei Pang

Sustainability Award: Kotn

Makeup Artist of the Year: Sabrina Rinaldi

Hair Artist of the Year: Kristjan Hayden

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.



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How to spot a Taylor Swift ticket scam as fraud reports skyrocket

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TORONTO – As Taylor Swift prepares to close out her Eras Tour era in Canada, fans desperate to see the pop star perform live are vulnerable to scams. The Canadian Anti-Fraud Centre has received 140 reports of fraudulent Swift ticketsthis year, most of which came from people who were scammed out of money.

“Once you’ve sent money, it’s very difficult to get those funds back,” said Nancy Cahill, a communications officer with the centre, which is jointly operated by the RCMP, Ontario Provincial Police and Competition Bureau.

For that reason, she said, prevention is the best protection.Here are some tips on how to spot a scam.

CONSIDER THE POLICY

At this point, it’s very easy to know which Taylor Swift ticket sales are scams: it’s all of them, at least if the ticket-holder is promising an instant transfer.

Ticketmaster announced earlier this month that ticket transfers for Swift’s sold-out concerts can only start 72 hours before the event. Previously, Swifties could move tickets between Ticketmaster accounts at any time.

It comes after a spike in reported hacks to Ticketmaster accounts.

“If anybody is telling you that they can transfer tickets now, that’s a huge red flag,” said Jagger Long, the owner of ticket resale business Karma Tickets.

Long has put a pause on buying and selling Eras Tour tickets for that reason — though they weren’t a huge part of his business because their astronomical price left them out of reach for most people.

CONSIDER THE PRICE

“If it’s too good to be true, chances are it is too good to be true,” Cahill said.

Swift tickets are a hot commodity, so they’re going for thousands of dollars apiece. Anything less than that and you should be wary, Cahill said.

Likewise, if there’s lots of pressure to act fast, Cahill recommendstaking a step back.

“If there’s a sense of urgency to send money because you’re going to miss out, that should be an indicator right there,” she said. “Many times you just stop and think about it and do your homework, and it can save you a lot of sorrow in the end.”

CONSIDER THE PERSON

One of the more common scams targeting Swifties at the moment involves an account takeover, Cahill said. A bad actor will gain access to someone’s social media account — often Facebook — and announce that they have Swift tickets for sale.

It may seem safe because the offer appears to be coming from someone you know, but in reality there are no tickets to be had.

If this happens to you, Cahill recommends reaching out to the prospective seller on a different platform, for instance by text message, or asking some mutual friends to verify whether the tickets are real.

Though it’s not possible to transfer Swift tickets at the moment, ticket reseller Long said he’s developed a system to minimize risk.

He only purchases tickets from people if he can meet them in person to make the online transfer.

He asks for their work email address to co-ordinate as another layer of accountability and then meets them at his bank. A police station is another good meet-up spot, he added.

Most importantly, Long said, he’ll have them transfer the ticket to him before he sends them money.

“Stick to your guns and say, ‘I’m not sending money first.’ I don’t care if this sounds like a great offer or not, that’s the No.1 rule that you have to hold on to.”

As for Long, he then posts the tickets for sale on his website and Facebook group.

He says he’s built a reputation for selling legitimate tickets over the years, and he cautions that would-be ticket buyers should do their due diligence to make sure sellers like him are trustworthy.

“Just be careful, because it does suck hearing about these people, especially when you hear the story afterward,” he said.

This report by The Canadian Press was first published Oct. 21, 2024.



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