Economy

Canada’s economy is flatlining, setting up a difficult start to 2024

Published

9 months ago

December 28, 2023

Canada’s economy is gathering momentum heading into 2024. Unfortunately, it’s in the wrong direction.

With the Bank of Canada holding interest rates at the highest levels since 2001 and inflation still running slightly ahead of the central bank’s target range, squeezed households and businesses have pulled back their spending, slowing the economy to stall speed. In October, real gross domestic product was unchanged, Statistics Canada reported just before Christmas, falling short of the 0.2-per-cent growth economists had expected.

October marked the fifth month in a row that the Canadian economy failed to post positive month-over-month growth, economists at National Bank of Canada NA-T noted in a report this week. Going back to 1997, that has only happened twice before: During the 2008-2009 financial crisis and in 2015, after the collapse in oil prices brought Alberta’s economy to a halt.

“The reality is that the Canadian economy is in the doldrums,” the report said. “This is a bitter setback as population growth remains staggering.”

The report found another cause for concern in the latest economic numbers. What growth did occur was concentrated in government-related sectors such as public administration, health and education. When those are stripped away to focus on the private sector, more than two-thirds of sectors posted stagnant or negative growth over the previous six months, something that has only happened during the past two recessions.

For its part, National Bank is the only one of the Big Six banks that foresees two quarters of back-to-back negative real GDP growth next year – the definition of a technical recession – starting in the first quarter.

Decoder is a weekly feature that unpacks an important economic chart.

Source link

Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

19 hours ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Source link

Economy

Statistics Canada reports wholesale sales higher in July

Published

1 day ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

Source link

Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Source link