By Gordon Isfeld and John Morrissy, Financial Post
Statistics Canada said Wednesday that gross domestic product was unchanged during the month, following growth of 0.1 per cent in June, the first month of expansion since July 2008.
“This is a shocker,” said Douglas Porter, deputy chief economist at BMO Capital Markets. “We’re not talking about a shot across the bow of the optimists; this is more like a torpedo through the hull.
“It’s not just the consensus that will be surprised by this result — the Bank of Canada has been loudly proclaiming lately that growth would likely surprise to the high side of their July forecast in the second half of the year,” Porter said.
Finance Minister Jim Flaherty said the flat economic performance in July “just shows that the recovery is fragile.”
“So we have to stay the course, continue to implement the economic action plan, the stimulus that we are putting into the economy,” Flaherty said Wednesday.
Statistics Canada said the manufacturing sector rose 0.8 per cent in July, after nine straight monthly declines.
Original full article at the Ottawa Citizen Newspaper
September shocker stayed away but October’s ominous.
Canada’s senior benchmark index entered the final quarter Friday morning after experiencing one of the most turbulent periods in recent memory.
Powered by the three heavyweight sectors, financials, materials and energy, the S&P/TSX index has surged 26 per cent in the first nine months of 2009 and, more remarkably, roared back 50 per cent since early March from a battering that dropped it 7,507 points to a six-year low.
Those three sectors, incidentally, have contributed around 80 per cent of the gains and it begs the question whether the comeback is sustainable while so many doubts persist about state of the economy.
Original article hosted Canada.com