OTTAWA, June 30 (Reuters) – The Canadian economy
unexpectedly shrank in April, hurt by weakness in the mining and
oil and gas industries, a setback that bodes poorly for a
second-quarter pick-up in growth that the Bank of Canada is
Gross domestic product fell 0.1 percent from March,
Statistics Canada said on Tuesday, short of analysts’
expectations for a gain of 0.1 percent. It was the fourth
consecutive monthly decrease.
OTTAWA, June 25 (Reuters) – Small-business investment
increased in most parts of Canada in the first quarter, with the
exception of two of the country’s most oil-sensitive provinces,
as firms adjusted to the fallout of lower crude prices, data
from PayNet showed on Thursday.
PayNet, which tracks commercial financing for millions of
small and medium-sized businesses in North America, said a shift
in the economy is underway, as regions less reliant on oil
production make a greater contribution to growth. It estimates
it will take another one to two years for this shift to play
OTTAWA, June 12 (Reuters) – Canada’s main stock index was
down for the second day in a row on Friday as energy shares fell
alongside the price of oil and financial shares came under
U.S. crude prices were down 1.5 percent to $59.86 a
barrel after Saudi Arabia said it stood ready to raise output to
OTTAWA, June 11 (Reuters) – Risks to the Canadian financial
system have edged up because of high household debt and the
associated economic impacts of low oil prices, the Bank of
Canada concluded on Thursday in its Financial Stability Review
“We judge that the vulnerability associated with household
indebtedness is edging higher, and the overall risk to financial
stability in Canada is slightly higher than it was at the time
of our December FSR,” Governor Stephen Poloz stated.
OTTAWA, June 8 (Reuters) – Canadian housing starts jumped to
the highest level in nearly a year in May, data on Monday
showed, an unexpected move that signaled the country’s housing
boom still has life and that the economy may strengthen in the
Housing starts rose to 201,705 units last month, according
to the Canadian Mortgage and Housing Corp report, topping market
expectations for 185,000. The figures are seasonally adjusted
OTTAWA, June 5 (Reuters) – Canadian jobs growth surged by
the most in seven months in May, buoyed by strength in the
manufacturing sector, in an encouraging sign following an
oil-induced economic slump at the beginning of the year.
Canada added 58,900 jobs last month, data from Statistics
Canada showed on Friday, handily topping expectations for a gain
of just 10,000. A tick up in the participation rate saw the
unemployment rate hold steady at 6.8 percent.
OTTAWA, May 29 (Reuters) – Canada’s economy suffered its
biggest contraction in nearly six years in the first quarter
with business investment and exports both falling as the
country grappled with a steep decline in oil prices, Statistics
Canada said on Friday.
The 0.6 percent annualized drop in gross domestic product
was unexpected with market players forecasting growth of 0.3
percent. The decline also marked a significant slowdown from the
fourth quarter’s downwardly revised 2.2 percent growth.
OTTAWA, May 27 (Reuters) – The Bank of Canada held its key
interest rate at 0.75 percent on Wednesday, shrugging off a weak
U.S. economy in the first quarter and saying solid U.S. growth
this quarter should help Canadian exports and business
The market had widely expected bank Governor Stephen Poloz
to keep the benchmark rate steady, but some analysts had begun
to question whether he was overly optimistic in expecting U.S.
strength to help Canada achieve the bank’s forecasts of
annualized economic growth of 1.8 percent in the second quarter
and 2.8 percent in the third.
OTTAWA, May 22 (Reuters) – Canada’s annual inflation rate
cooled to 0.8 percent in April, making for the smallest increase
since October 2013 as energy prices tumbled, though economists
did not see it altering the course of monetary policy for now.
A separate report by Statistics Canada Friday showed retail
sales climbed for a second month in a row in March, as consumers
spent more on cars, food and alcohol.
OTTAWA, May 13 (Reuters) – Canadian financial authorities
are unlikely to raise the country’s inflation target after a
review this year given the risk to the central bank’s
credibility and widespread support for the existing benchmark,
The Bank of Canada, which reviews the target every five
years, flagged in November that it was researching whether to
raise the target above 2 percent, given the difficulties of
conducting monetary policy with interest rates near zero.