TEC Canada is pleased to provide the Andersen Monthly Economic Report exclusively to our members. The former assistant chief of the Bank of Canada’s research department, Dr. Peter Andersen provides valuable economic insight to help you make better business decisions.
Capital spending intentions have collapsed in Canada with only a few sectors showing promise. In the U.S., the third quarter economic rebound provides welcome relief for stability for the next 90 days, though determining its cause is difficult. Despite the persistence of the virus globally, world trade is recovering. Canada may be in the process of heading towards a guaranteed minimum income; and the U.S. could be pressured to move in this direction as well.
- Capital spending plans in Canada have crashed; Alberta and Newfoundland show the largest percentage declines in investment intentions compared to 2019
- Outside of manufacturing a few sections show an increase in intentions (waste management, health care, information/telecommunications, public administration and transportation/warehousing)
- The housing industry is booming and homebuilders have never been more confident. New homes can be sold in a virtual world and housing is in a V-shaped recovery
- Sales are running higher than expected and are up 2.7% from July of last year
- Media claims of widespread virus resurgence is misleading – 7-day moving average of new cases is now down by 32%
- Evidence shows that we will be facing shortages of a wide range of materials and commodities
- The economic rebound is now straining supply, for example in lumber
- Forbes: The Great American Housing Boom Has Begun
- CBC: Capital Spending in Alberta’s Oilpatch Expected to Fall by 30% This Year
- BNN Bloomberg: Ottawa Unveils $37B Support Plan to Replace CERB
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