On Wednesday morning the Bank of Canada left interest rates unchanged. I believe this was good news. But it was over-shadowed by a significant drop in stock markets tied to world events and outlooks.
In regards to the overall stock market declines, I have never claimed any ability to predict such matters, nor do I think anyone else has that ability. I am confident that this too shall pass. But it is never clear how far markets will fall before they turn around.
Statistics Canada reported manufacturing results for November. The lower dollar is benefiting manufacturing in Ontario which rose about 5%. For the country as a whole manufacturing was up 1% versus October but down slightly versus November 2014.
Statistics Canada also reported travel between Canada and the United States. The lower dollar is having an impact. Year over year, 10% more Americans (and others) traveled to Canada while 8% fewer Canadians left this country. This should continue and perhaps sharply so with the rapid fall in the dollar. However, Canada faces a huge travel deficit in that even in Summer more Canadians leave than foreigners arrive. And in Winter, understandably, we travel out at almost three times the rate that the rest of the world travels to Canada.
Statistics Canada also reports that wholesale trade was up 1.8% in November versus October, the first gain in five months.