COVID-19 was impacting Canada’s economy before the current crisis, according to new figures from Statistics Canada, which predicts that the current pandemic “will significantly affect economic activity in March and subsequent months.”
While the future release of economic data should come with the addendum BC (Before COVID-19), figures measuring economic growth in January already bear the imprint of the coronavirus.
Real domestic growth in Canada rose 0.1 per cent in January, as inclement weather in many parts of the country, including British Columbia, labour unrest in Ontario and declining oil prices dampened economic growth across parts of the country and key sectors like energy.
Looming in the background already were the early effects of COVID-19. “In January, effects such as reduced trade with China and advisories against non-essential travel to China affected potential growth,” reads the accompanying analysis of the new figures.
Transportation and warehousing, an industry dependent on trade, also declined in January, dropping 1.7 per cent for the second time in three months. “Air transportation declined 2.7 per cent, as movement of both goods and passengers decreased,” it read. “Mid-January winter storms across many parts of the country caused multiple delays and cancellations at Canada’s busiest airports. The “rapid spread” of COVID-19 leading to travel advisories in the latter part of January coupled with a computer system problem at one of Canada’s largest air carriers also depressed trade.
Mining, quarrying, and oil and gas extraction had also been declining in January 2020 before suffering additional declines in the face of a global supply war between Russia and Saudi Arabia, and declining demand for oil amid slowing economic growth and travel.
The spread of COVID-19 and the responses by various governments (travel restrictions, bans on various kinds of events and activities) have only intensified these trend lines, and Statistics Canada does not paint a pretty picture without citing specific figures.
“Because of these factors, as well as supply chain disruptions for many types of goods, temporary closures of non-essential stores and service providers and the recent lowering of interest rates, the economic effects of the coronavirus outbreak will be deeply felt in subsequent months,” it read.
Statistics Canada implicitly acknowledges that January figures appear in a different context in light of current development, but nonetheless sees value in them.
“While the landscape of the Canadian and world economy has shifted since January, data from the beginning of the year are important in monitoring when and where changes occur over the following months,” it read. “As such, this release and the detailed industry summary serves as a baseline of the Canadian economy for measuring the impact of the COVID-19 outbreak on various industries in the coming months.”
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.
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.
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.
