GLOBE AND MAIL REPORTS: “CANADA SHOPS, ECONOMIC SLOWDOWN FEARS DROP”
The question asked in this Globe article was: “What happened to Canada’s worrisome economic slowdown? It looks like consumers were so busy shopping, that they zoomed right by it.”
Stats Canada reported retail sales surged 1.9% in May. This was the biggest monthly growth in three years. The figure trounced economist’s expectations of 0.4%. Economist’s predictions are useless; they are never right. Their function really should be just to analyze what has happened because they NEVER get their predictions right.
Other good news: Canada added an astounding 95,000 jobs in May and held on to those gains in June. A feat that most economists felt unlikely. No kidding.
Housing starts have rebounded into the 200,000 area. Overall, the economic results show tremendously positive strength, more so than the Bank of Canada predicted. You don’t say.
As I have said for the last 4 years, real estate prices fall during recessions. We are not in a recession and will not be for quite a while.