Canada’s gross domestic product in July remained unchanged, adding to the prospect that the economy can achieve a soft landing and avoid a recession. The data released by Statistics Canada on Friday offered a picture of an economy holding its own even as it cools. Services-producing industries grew by ... READ MORE >
Bank of Canada
Canada inflation surges 4%, exceeding forecasts
Inflation in Canada spiked far more than forecast in August, raising the prospect of another interest rate increase by the Bank of Canada. Even though inflation was expected to increase because of rising gas prices, higher rents and comparisons to the moderate levels of a year ago, the 4% ... READ MORE >
Soft landing likely as Canada added 40,000 jobs in August
A look at August’s job report reveals clear signs of a soft landing. Canada added 40,000 jobs, smashing expectations, and offset the modest loss in July many times over. The unemployment rate was unchanged at 5.5%, according to data released on Friday by Statistics Canada. Immigration has played a ... READ MORE >
Bank of Canada holds rates steady amid a cooling economy
The Bank of Canada kept its policy rate at 5% on Wednesday as the unexpected contraction of the economy in the second quarter gave a clear message of a cooling economy. The central bank’s decision to keep rates steady also suggested that its campaign of rate increases might be over, rendering a rate ... READ MORE >
Canada’s economy contracts as higher interest rates take a toll
The picture of an economic slowdown is coming into focus as the Canadian economy contracted in the second quarter because of declining housing investments and household spending. Gross domestic product fell by 0.2% in the second quarter, according to data released by Statistics Canada on Friday. On ... READ MORE >
Canada retail sales edge higher, bolstered by car purchases
Retail sales in Canada climbed by 0.1% to $65.9 billion in June, according to data released by Statistics Canada on Wednesday. Despite the slight increase, the new data offers evidence of cooling consumer demand. The increase was entirely driven by the sales of motor vehicles and parts. Excluding motor ... READ MORE >
Canadian inflation ticks up but underlying data may bode well for interest rates
Canada’s July inflation figures are a somber reminder that the road back to 2% will take time and patience. The headline inflation rate stands at 3.3%, above the 1-3% target range after months of sharp decline, according to data Statistics Canada released Tuesday. A 3.3% inflation rate is clearly ... READ MORE >
Canada’s job market slows as unemployment rate hits 5.5%
Even though the number of jobs overall in Canada was little changed as the economy lost 6,000 positions in July, the labour market is showing signs of losing momentum. Canada’s unemployment rate rose to 5.5%, the third consecutive increase for the first time since March 2020, the onset of the ... READ MORE >
Canada added 41,400 jobs in April amid resilient labor market
Canada’s labor market remained resilient in April despite increasing recession fears. All key numbers released by Statistics Canada on Friday came in stronger than expected—maybe too strong for the Bank of Canada’s comfort as it tries to tame inflation. The jobs report should raise the chance of a rate ... READ MORE >
Canadian recession tracker: Preparing for landing
As the Bank of Canada tries to tame inflation and simultaneously guide the economy to a soft landing, most market participants are skeptical that it can pull off the feat. After months of steep interest rate increases, the higher borrowing costs are only beginning to be felt in Canada's real ... READ MORE >