The global supply chain is finally turning around as the economy enters a slowdown, consumer demand softens and some of the back-ordered goods from last year are finally arriving. Those changes are showing up in RSM Canada's Supply Chain Index, which in June turned positive for the first time since ... READ MORE >
Canada
Canada inflation hits 8.1% but shows signs of softening
Inflation reached 8.1% in June in Canada, the highest since January 1983, although the pace of the increase eased compared to previous months, according to data released by Statistics Canada on Wednesday. On a monthly basis, the consumer price index rose by 0.7% in June, down from 1.4% in May. More ... READ MORE >
Canadian housing starts fall slightly in a sign of possible cooling
Housing starts in Canada fell to 273,800 in May, a 3% drop from April, according to data released by the Canadian Mortgage and Housing Corporation on Monday. Although housing starts are still much higher than during the pre-pandemic era, the slight decline might be a preview of the construction ... READ MORE >
Bank of Canada raises its policy rate by 1% to tame inflation
The Bank of Canada announced a 100-basis-point rate hike on Wednesday, the largest increase since 1998, in an attempt to restore price stability amid rising inflation expectations and wage growth. The announcement brought the policy rate to 2.5%. We now expect a 75 basis-point hike at the September ... READ MORE >
Canada’s unemployment rate hits record low, even as economy sheds jobs
Bucking a trend of continuous job gains since January, Canada lost 43,000 jobs in June as the unemployment rate hit another record low of 4.9%, according to data released by Statistics Canada on Friday. Even with the loss in jobs, the June data is unlikely to sway the Bank of Canada from announcing ... READ MORE >
As rates rise, Canada’s construction industry enters a new phase
In response to rising inflation, the Bank of Canada began a series of aggressive rate hikes this year, bringing its policy rate from an effective lower bound of 0.25% to 1.5% in June. One of the industries hit hardest by rising interest rates has been construction, and this slowdown now threatens to ... READ MORE >
Canada’s unemployment rate falls to 5.1%, another record low
Canada’s labour market remained tight in May, adding 40,000 jobs as the unemployment rate fell to 5.1%, another record low, according to data released by Statistics Canada on Friday. The shortage of workers continued to put upward pressure on hourly wages, which increased by 3.9% on a yearly basis, ... READ MORE >
Bank of Canada raises interest rate to 1.5% to tame inflation
The Bank of Canada announced another 50-basis-point increase in its overnight rate on Wednesday, to 1.5%, while it continued to shrink its balance sheet, another aggressive step in its campaign to tame inflation. The move was expected given that the economy remains overheated, despite several rate ... READ MORE >
Canada’s economy cools but outlook remains positive
Canada’s GDP grew 3.1% in the first quarter of 2022 as business investment and household consumption continued to boom while energy exports dragged, according to data released by Statistics Canada on Tuesday. The figure was in line with the Bank of Canada’s forecast but noticeably under market ... READ MORE >
Rising inflation eases but Canada’s housing remains a concern
April brought a hint that inflation could soon peak in Canada. The Consumer Price Index rose at an annual rate of 6.8%, a slight increase from March, while all measures of core inflation continued to rise, according to data from Statistics Canada released on Wednesday. On a monthly basis, the increase ... READ MORE >