Tuesday, August 14, 2007

Canada’s Economy on Fire - From RBC


Canada’s economy on fire


The economic news from Canada during the past month has been unambiguously strong, with retail sales posting the largest one-month gain in almost 10 years in May and employers adding 35,000 more workers to their June payrolls.

Even manufacturers, who have to contend with the Canadian dollar trading at its highest level against the U.S. dollar in 30 years and rising input prices, remain optimistic. Statistics Canada’s quarterly survey of manufacturers, released in late July, reported continued optimism on production and employment with only a modest deterioration in the outlook for orders.

This upbeat assessment is likely to alleviate worries at the Bank of Canada that the currency has risen to levels inconsistent with economic fundamentals. The strong data reports support our forecast that the economy grew at an above-potential 3% annual rate in the second quarter and moved deeper into a state of excess demand.

In the July Monetary Policy Report Update, the Bank acknowledged that the economy “is operating further above its potential than was projected in the April report,” justifying their decision to raise the policy rate to 4.5% on July 10. Courtesy of RBC

Toronto Real Estate Board (TREB) Average Prices and Graph Read more about real estate prices

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
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