The non conformer's Canadian Weblog

March 23, 2009

Canada’s economic health worsens: Mr Harper note this.

  0canadadollarfalling2

Canada’s economic health worsens: report  Financial Post March 23, 2009 9:02 AM Statistics Canada said Monday its composite leading index fell 1.1% — the biggest monthly decline since 1981 — following a revised 0.9% drop in January, with nine of the 10 sector components losing ground. Most economists had expected a 0.9% drop in February. OTTAWA — Key indicators of Canada’s economic health fell more than expected February, as activity continued to weaken in the housing and auto sectors as the economic downturn deepened and stock prices tumbled. Statistics Canada said Monday its composite leading index fell 1.1% — the biggest monthly decline since 1981 — following a revised 0.9% drop in January, with nine of the 10 sector components losing ground.  Most economists had expected a 0.9% drop in February. “The housing and stock markets continued to post the largest declines, while losses in manufacturing steepened as the auto industry began to implement extensive shutdowns at the turn of the year,” the federal agency said. The biggest decline was in the housing index, which dropped 8% as “as an upturn in home sales was outweighed by fewer housing starts in February,” it said. The stock prices indicator fell 7.5% and durable goods were down 1.4%.  “The three manufacturing indicators declined in unison,” the agency said. “New orders fell 4.8%, with the weakness in autos intensifying and spreading to other industries like iron and steel. Inventories fell for a seventh straight month, but not as fast as sales, reducing the ratio of shipments to stocks.” Statistics Canada said money supply was the only component to rise, rising 1.8% in February from the previous month. “The stimulus from monetary policy also was a major factor behind the slower rate of decline in the leading index for the United States,” it said. Ian Pollick, economics strategist at TD Securities, said “this is undoubtedly a weak report.” “We know that there exists a good correlation between the level of this index and real GDP in the same month, as such, we see further evidence that February GDP will be quite soft,” he said.
http://www.calgaryherald.com/Business/Canada+economic+health+worsens+report/1418578/story.

Food prices eating in to Canadians’ pockets.  Rising gas and food prices made 2008 a tough year for Canadians and their wallets, according to a new report from Statistics Canada. The year saw consumer prices as a whole rise slightly faster than the year before, the agency says, but that gradual increase “masked” big fluctuations at the pumps and in grocery stores.  Overall, consumer prices rose an average of 2.3% in 2008, slightly faster than the average increase of 2.2% the year before.  Within that, gas prices climbed by 12.7% on average over 2008, producing the largest annual increase since hurricanes Katrina and Rita wreaked havoc on the oil market in 2005. However, there is good news. Gas prices dropped as the year went on. Pump prices in December 2008 were 25.8% lower than in December 2007, Statistics Canada says, marking the largest year-over-year drop since the gasoline price index debuted in 1949. But in the aisles of their grocery stores, Canadians faced the opposite trend. Store prices on food rose 3.9% in 2008 and the annual increase in prices has been accelerating over the last five years.  In particular, the price of staples such as bread, rice, flour, milk and eggs rose “sharply” in 2008, due in part to higher transportation costs, rising commodity prices and increased demand for food in emerging markets abroad. http://www.calgaryherald.com/Business/Food+prices+eating+Canadians+pockets/1418807/story.html

With this very serious downturn in Alberta too I next do not expect as many Albertans to vote for you Mr Stephen Harper. It is very evident on the Alberta net that many, many  Conservatives are not happy with Mr Harper.

 

 

 

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