Smart Real Estate Investors educate themselves about the economy. I try to be a smart investor, so..
Here are a few articles that I’m reading about the Canadian economy:
Leading index suggests robust growth
Statistics Canada’s index of leading economic indicators rose 0.9 per cent last month, the federal data agency said Friday.
The leading index includes 10 components that collectively provide insight into where the economy is likely headed in the next six to 12 months. Growth in the leading index usually only exceeds one per cent in the early stages of recovery from a downturn.
The 0.9 per cent figure is in line with the index’s average month-over-month showing for the past year. It peaked in December 2009 at 1.5 per cent.
The Financial Post expands:
The manufacturing sector, which has had trouble dealing with the high Canadian dollar and weak U.S. markets, continued to recover.
All three manufacturing indicators rose. New orders were up by 4%, the fourth consecutive monthly increase, the average workweek posted its first increase since September 2009 while the ratio of shipments to inventories posted its 10th gain in a row.
The Vancouver Sun doesn’t have as rosy an outlook, in Bumps in road to slow Canada’s recovery
Canada has been an economic lion since the end of 2009, with growth out-pacing that of its G7 peers by a wide margin. But the second half of this year will tame that roar, according to a quarterly economic forecast released Thursday by TD Economics.
“The pace of Canada’s economic revival stands out in the world. Real GDP has virtually recouped all of the losses recorded during the recession. And real consumer spending has already eclipsed its pre-recession level,” said Craig Alexander, chief economist for TD Bank Financial Group.
Canada’s gross domestic product grew by a five-to six-per-cent annualized rate in the fourth quarter of 2009 and the first quarter of 2010, while the average in the rest of the G7 countries was 1.3 per cent, the report says. For the second quarter of this year, TD forecast growth of at least four per cent before what the bank calls a “pothole recovery” slows everything down to a more “moderate” speed.
“Bumps lay ahead as households and governments shift their attention to addressing their recent largesse,” said Alexander. “What’s more, volatility remains the watchword of the day.”
What are you reading? Let me know in the comments!
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It’s great to hear that the Canadian economy (which, am I right?, didn’t suffer quite as much to begin with) is becoming a benchmark of recovery. It feels like the optimist in me is finally (finally!) justified.
Thanks Mike
Globally, things are shaky. I think we’re better positioned than most to weather it.