Reed Construction Data Chief Economist Alex Carrick discusses current developments in Canada's economic environment. He also shares light-hearted reflections on life and current events.
communities « market insights « notes from alex carrick
The world is in crisis with respect to its "soft commodities". Weather plays a large role in determining the supply of such goods. However, a number of other factors have also recently come to the fore in limiting availability. There is increasing anxiety about the price and amount of basic food staples. This is even leading to export taxes and quotas being imposed by former major exporting nations.
CanaData’s construction starts statistics through the first four months of 2008 remained significantly down versus the same period in 2007. Grand total starts (i.e., residential, plus ICI, plus engineering) for the country as a whole were -19% in square footage and a similar -18% in dollar volume.
The U.S. goods and services trade deficit has plateaued at about -$700 billion for the past eighteen months. There are five key things to note about the U.S. foreign trade deficit.
According to the latest labour force numbers released by Statistics Canada, it’s great to be working in construction these days, but not so wonderful if your employment history has been in a factory. Total Canada employment growth in April 2008 was +19,000 jobs on a month-to-month basis. The year-over-year job growth rate was +2.0%. Both of these figures exceeded key benchmark levels.
Over the weekend, I had some fun imagining how certain celebrities and politicians would seem to be ideally suited for second careers, in their golden years, as “greeters” at Wal-Mart. Try to imagine being met by these people and these words on your way into the store.
According to data just released by Canada Mortgage and Housing Corporation (CMHC), housing starts through April of this year have averaged 229,000 units on a seasonally adjusted annualized basis. Unit starts in each of the past three months have been revised downward by about 12,000 units. Through March 2008, and prior to the revisions, starts had been +9.0% versus the same period in 2007. Now, through April (and including the revisions), they are only +2.1% ahead of last year, with further easing expected in the months ahead.
The news about major happenings in the oil and gas sector just keeps on coming. Here are four of the latest and most interesting stories.
Enjoy the low interest rates that are currently in place. They are likely to prevail at least through the summer. However, the clock may well be ticking on how long they can last. The source of a future disturbance to the current tranquility is likely to be higher prices originating in the agricultural sector.
There is an elephant in the room when it comes to the unionized automaking sector in Canada. “All-in” wages (base rates plus supplements) are as much as one-third higher than they should be. This is relative to sister plants of the Detroit Three in the U.S. and new foreign-owned plants throughout North America and around the world
The April 2008 employment numbers, released on Friday by the Bureau of Labor Statistics, correspond with what we already know about soft spots in the U.S. economy.
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