Posted AT 5:03 PM EST ON 09/03/07
Canada's economy off to a flying start
TAVIA GRANT
Globe and Mail Update
http://www.theglobeandmail.com/servlet/story/RTGAM.20070309.wjobs0309/BNStory/Business/home
A pair of reports Friday offered more proof that Canada's economy is flourishing, prompting the Canadian dollar to climb and at least one economist to boost his first-quarter growth forecast.
Canadian employers added 14,200 people to their payrolls in February, the third month in a row the economy has churned out more jobs than expected. A separate Statistics Canada report showed exports hit a record in January, sending Canada's trade surplus to a 13-month high.
“Today's stronger than expected reports on February employment and January international trade have prompted us to raise our already-above consensus forecast” for growth, said Ted Carmichael, chief economist at J.P. Morgan Securities Canada Inc., in a note.
He now pegs first-quarter growth at 4 per cent from an old forecast of 3.5 per cent, compared with 1.4-per-cent growth in the fourth quarter.
The Canadian dollar rose more than half a cent after the reports suggested the economy is off to a strong start.
Job gains have registered the hottest start to the year in a quarter century, with more than 103,000 jobs created in the first two months of 2007, according to National Bank Financial.
February's jobless rate, meantime, unexpectedly fell to 6.1 per cent from 6.2 per cent, Statscan said.
Employment has been on an upward trajectory since August, with average monthly gains of 42,000, the agency said. Last month's gains came despite a railroad strike, which helped knock 34,300 jobs off the goods-producing side of the economy. The strike has ended, boding well for the current month.
“March is expected to cough up some of the jobs that were lost in February due to a rail strike that appears to have hobbled the goods-producing sector,” said Stewart Hall, market strategist at HSBC Securities (Canada) Inc., in a research note.
February's gains in the job market come after the economy added 88,900 jobs in January, the strongest showing in eight months.
Employers in finance, insurance, real estate and leasing along with transportation and warehousing added the most jobs in the month.
Manufacturers resumed their job cuts, shedding 34,700 positions last month.
“The recent strike by Canadian National Railway workers may have led some manufacturers and support industries to scale back production,” Friday's report said.
Economists polled by Bloomberg had expected 5,000 new Canadian jobs last month with the rate holding steady.
The Canadian dollar rose to 85.41 cents (U.S.) from Thursday's close of 84.76 cents.
Canada's economy off to a flying start
TAVIA GRANT
Globe and Mail Update
http://www.theglobeandmail.com/servlet/story/RTGAM.20070309.wjobs0309/BNStory/Business/home
A pair of reports Friday offered more proof that Canada's economy is flourishing, prompting the Canadian dollar to climb and at least one economist to boost his first-quarter growth forecast.
Canadian employers added 14,200 people to their payrolls in February, the third month in a row the economy has churned out more jobs than expected. A separate Statistics Canada report showed exports hit a record in January, sending Canada's trade surplus to a 13-month high.
“Today's stronger than expected reports on February employment and January international trade have prompted us to raise our already-above consensus forecast” for growth, said Ted Carmichael, chief economist at J.P. Morgan Securities Canada Inc., in a note.
He now pegs first-quarter growth at 4 per cent from an old forecast of 3.5 per cent, compared with 1.4-per-cent growth in the fourth quarter.
The Canadian dollar rose more than half a cent after the reports suggested the economy is off to a strong start.
Job gains have registered the hottest start to the year in a quarter century, with more than 103,000 jobs created in the first two months of 2007, according to National Bank Financial.
February's jobless rate, meantime, unexpectedly fell to 6.1 per cent from 6.2 per cent, Statscan said.
Employment has been on an upward trajectory since August, with average monthly gains of 42,000, the agency said. Last month's gains came despite a railroad strike, which helped knock 34,300 jobs off the goods-producing side of the economy. The strike has ended, boding well for the current month.
“March is expected to cough up some of the jobs that were lost in February due to a rail strike that appears to have hobbled the goods-producing sector,” said Stewart Hall, market strategist at HSBC Securities (Canada) Inc., in a research note.
February's gains in the job market come after the economy added 88,900 jobs in January, the strongest showing in eight months.
Employers in finance, insurance, real estate and leasing along with transportation and warehousing added the most jobs in the month.
Manufacturers resumed their job cuts, shedding 34,700 positions last month.
“The recent strike by Canadian National Railway workers may have led some manufacturers and support industries to scale back production,” Friday's report said.
Economists polled by Bloomberg had expected 5,000 new Canadian jobs last month with the rate holding steady.
The Canadian dollar rose to 85.41 cents (U.S.) from Thursday's close of 84.76 cents.
