Hockey helps Canada' s economy grow once again in January


Through Louise Egan

OTTAWA (Reuters) — Nova scotia is economy rebounded back from a year-end downturn in January thanks to factories, mines and also the return of expert ice hockey , however growth still seems too poor to match the central bank’s upbeat outlook and interest rates are unlikely to budge until 2014.

Major domestic product broadened simply by 0. two percent within the 30 days, Statistics Nova scotia mentioned on Thurs, following the weakest two quarters since the 2008-09 economic downturn along with a 0. two percent contraction in December.

A comeback within the manufacturing field helped spark the turnaround, together with strength within the mining as well as energy sectors and also the delayed start of state’s beloved hockey time of year after National Hockey League players as well as owners settled a months-long labor challenge.

The data suggests the economy is starting the entire year on the more strong footing after disappointing 0. six percent annualized growth in the fourth quarter.

But economists are gambling the first quarter will fall much short of the central bank’s forecasted 2 . 4 percent growth.

“Once the darling of sophisticated financial systems, Canadian economic growth is anticipated to converge to become more in line with the peers, inches mentioned Mazen Issa , macro strategist at kunne TD Securities.

Nova scotia recovered a lot more quickly in the 2008-09 economic downturn than did the usa as well as others but has been spinning the wheels for many months because exports and manufacturing sputtered.

That has forced the Financial institution of Nova scotia to acknowledge there is certainly much more slack throughout the economy than it had expected. As a result, it has gradually softened its talk about an rate of interest boost, which month mentioned rates will stay on hold “for an interval of time”.

Issa mentioned the January report was in range with TD’s forecast of 1. six percent growth within the first 3 months of the season, “and the broader narrative of a gradual grind higher over the course of the entire year. inches

The central bank may publish updated predictions alongside its next interest rate choice on April 17.

Manufacturing expanded 1 . 2 percent in January because gains in created metals and wood products offset a decline in transport equipment.

The exploration, quarrying as well as oil and gas removal industry broadened 0. two percent, while the arts as well as entertainment sector got a one-time improve of four. 1% because Canadians flocked to hockey arenas as well as sports pubs following the NHL work dispute ended.

Gamers and owners arrived at a deal within January to finish a four-month lockout of players. Nova scotia has NHL teams within Vancouver, Calgary, Edmonton, Winnipeg, Greater toronto area, Ottawa as well as Montreal.

Sectors that shrank within January included agriculture as well as forestry, development, and financial and insurance policy.

Inside a separate report, Statscan mentioned Canadian industrial product prices increased 1 . 4 percent in February from January, the largest jump since June 2008 because prices for petroleum, coal and also other commodities billed greater.

The Canadian dollar hit its strongest degree in more than a month – at kunne C$1. 0145 compared to U. Ersus. money, or 99. 57 U. Ersus. cents — immediately after the discharge of data. It later retreated as well as was little transformed from Wednesday’s American close of C$1. 0165, or 98. 38 U. Ersus. cents.

The solid GDP report along with an inflation rate which is below the Bank of Canada’s 2 percent target has verified market expectations how the bank will host rates at the current 1 . 0 percent until 2014.

“We’re taking a look at possible downward growth revisions in the BoC once again… alongside slightly higher extra capacity estimates. We continue to keep expect an incrementally much more dovish Monetary Policy Report within a couple of weeks, inches said Derek Holt, economist at kunne Scotiabank.

Global forecasters surveyed simply by Reuters in Feb predicted the following rate hike will be within the first quarter of 2014. Still traders are generally pricing within a slight prejudice towards an interest rate cut later this year, according to yields upon overnight index swaps, which trade based on expectations for the plan price.

(Editing simply by Jeffrey Hodgson; as well as Philip Galloway)


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Through Louise Egan

OTTAWA (Reuters) — Nova scotia is economy rebounded back from a year-end downturn in January thanks to factories, mines and also the return of expert ice hockey , however growth still seems too poor to match the central bank’s upbeat outlook and interest rates are unlikely to budge until 2014.

Major domestic product broadened simply by 0. two percent within the 30 days, Statistics Nova scotia mentioned on Thurs, following the weakest two quarters since the 2008-09 economic downturn along with a 0. two percent contraction in December.

A comeback within the manufacturing field helped spark the turnaround, together with strength within the mining as well as energy sectors and also the delayed start of state’s beloved hockey time of year after National Hockey League players as well as owners settled a months-long labor challenge.

The data suggests the economy is starting the entire year on the more strong footing after disappointing 0. six percent annualized growth in the fourth quarter.

But economists are gambling the first quarter will fall much short of the central bank’s forecasted 2 . 4 percent growth.

“Once the darling of sophisticated financial systems, Canadian economic growth is anticipated to converge to become more in line with the peers, inches mentioned Mazen Issa , macro strategist at kunne TD Securities.

Nova scotia recovered a lot more quickly in the 2008-09 economic downturn than did the usa as well as others but has been spinning the wheels for many months because exports and manufacturing sputtered.

That has forced the Financial institution of Nova scotia to acknowledge there is certainly much more slack throughout the economy than it had expected. As a result, it has gradually softened its talk about an rate of interest boost, which month mentioned rates will stay on hold “for an interval of time”.

Issa mentioned the January report was in range with TD’s forecast of 1. six percent growth within the first 3 months of the season, “and the broader narrative of a gradual grind higher over the course of the entire year. inches

The central bank may publish updated predictions alongside its next interest rate choice on April 17.

Manufacturing expanded 1 . 2 percent in January because gains in created metals and wood products offset a decline in transport equipment.

The exploration, quarrying as well as oil and gas removal industry broadened 0. two percent, while the arts as well as entertainment sector got a one-time improve of four. 1% because Canadians flocked to hockey arenas as well as sports pubs following the NHL work dispute ended.

Gamers and owners arrived at a deal within January to finish a four-month lockout of players. Nova scotia has NHL teams within Vancouver, Calgary, Edmonton, Winnipeg, Greater toronto area, Ottawa as well as Montreal.

Sectors that shrank within January included agriculture as well as forestry, development, and financial and insurance policy.

Inside a separate report, Statscan mentioned Canadian industrial product prices increased 1 . 4 percent in February from January, the largest jump since June 2008 because prices for petroleum, coal and also other commodities billed greater.

The Canadian dollar hit its strongest degree in more than a month – at kunne C$1. 0145 compared to U. Ersus. money, or 99. 57 U. Ersus. cents — immediately after the discharge of data. It later retreated as well as was little transformed from Wednesday’s American close of C$1. 0165, or 98. 38 U. Ersus. cents.

The solid GDP report along with an inflation rate which is below the Bank of Canada’s 2 percent target has verified market expectations how the bank will host rates at the current 1 . 0 percent until 2014.

“We’re taking a look at possible downward growth revisions in the BoC once again… alongside slightly higher extra capacity estimates. We continue to keep expect an incrementally much more dovish Monetary Policy Report within a couple of weeks, inches said Derek Holt, economist at kunne Scotiabank.

Global forecasters surveyed simply by Reuters in Feb predicted the following rate hike will be within the first quarter of 2014. Still traders are generally pricing within a slight prejudice towards an interest rate cut later this year, according to yields upon overnight index swaps, which trade based on expectations for the plan price.

(Editing simply by Jeffrey Hodgson; as well as Philip Galloway)