Monday, June 15, 2009

Morning coffee and economic indicators

*The Royal Bank says the Canadian economy will shrink by 2.4 per cent this year, due in part to the substantial 5.4 per cent annual GDP contraction in the first quarter.

That's the worst quarterly economic performance since 1991 and likely the worst in the current recession.

*A new forecast by RBC Economics suggests the Ontario economy may contract by 3.4 per cent this year.

The report cites difficulties in the manufacturing sector, weak external demand for Ontario's products and continued job losses.

The RBC report says the "path ahead for the Ontario economy is fraught with uncertainty,'' especially in the automotive and manufacturing sectors.

*Manufacturing sales edged down 0.1 per cent to $41 billion in April.

Statistics Canada reports manufacturing sales leveled off between February and April, after falling by 18.7 per cent between October 2008 and January 2009.

The agency says a 16.4 per cent gain in the transportation equipment industry was offset by weakness in other industries.

Excluding the transportation equipment industry, manufacturing sales decreased 2.8 per cent.

*The number of new motor vehicles sold remained essentially unchanged in April at 121,290, following a strong increase in March.

Statistics Canada reports April sales were eight per cent higher than those reported in December 2008, when new motor vehicles sold were at their lowest level in 10 years.

Preliminary industry data for May indicate that the number of new motor vehicles sold was up about one per cent from April.

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Michael Harkov said...

The RBC also said -

The Canadian economy will shrink by 2.4 per cent this year but will start to show signs of a "moderate recovery" in 2010, the Royal Bank of Canada said Monday.

The economy recovering but Canadians don't want an election. Oh what to do Iggy, what to do! :D

Jon Pertwee said...

Moderate recovery hardly elicits a resounding voice of confidence in Harper's work Michael.

Gayle said...

Of course, he could have the election in the fall. Since the NDP and the Bloc have made it clear they are not supporting Harper it will be kind of hard for them to back out of an election.

A BCer in Toronto said...

Gayle, I'm quite certain the NDP and/or BQ could find a way of backing out if they wanted to. They would need concessions from Harper, though.