Ontario stands to gain exponentially from automaker commitments to electric vehicles, which have been bolstered by provincial and federal government support for the electrification of vehicles, the report released Monday said.
“Canada’s manufacturing sector has almost single-handedly pulled the country out of recession in recent months, and this strong performance, coupled with promising signs from other areas such as real estate and energy, suggests that better days are ahead for the economy,” Alex Kotsopoulos, RSM Canada projects and economics partner, said in a statement.
Yet Canadian manufactured products face market challenges amid increasing Buy American provisions in the United States, the research suggested.
“There’s still plenty of work to be done on the trade front,” Kotsopoulos said.
“Canada’s over-reliance on the U.S. leaves it vulnerable to any trade frictions that happen between the two nations, and we’re seeing that effect now as the Biden administration continues to focus first and foremost on rebuilding the U.S. economy.”
Despite the turmoil in the country’s energy sector, energy products accounted for nearly 22% of Canada’s total exports to the United States in the first quarter of 2021, the report said.
Meanwhile, Canada’s housing market accounted for two-thirds of economic growth in the first quarter, as increasing demand for single-family homes and tight supply drove up prices, according to the research.
Demand for housing is expected to remain strong as millennials become the backbone of consumer demand and the workplace, the report said.
In addition, increases in household savings suggests housing market investments may strengthen as the pandemic subsides, the research found.
Still, despite strong manufacturing and housing numbers, business investment has hit a wall.
The report found that business spending on machinery, equipment and non-residential structures has stalled at about 14% below pre-Covid levels, signalling trouble for long-term economic development.
“While there are promising signs, business investment is still too low,” Joe Brusuelas, the chief economist for RSM U.S. said in a statement.
“This is something that’s slowing down the potential for economic growth.”
Strengthening the labour force and its ability to produce diversified items of value will be key to attracting capital long-term, the report found.
It also recommends spending on programs that increase workforce productivity.
The government should invest in productivity through measures like the universal expansion of broadband coverage, childcare, housing and nutritional security, Brusuelas said.
“These commitments, coupled with the ability of the younger generations to work remotely, will allow for sustained growth,” he said.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
