Times of transition can be confusing for households and businesses as the Canadian economy continues to provide good news while the longer-term realities are likely moving towards a more mature outcome. Our colleagues at the Economics group at National Bank Financial are not sounding any loud alarm bells. It is important to refresh the reality of the economic cycles — they go up and down. It is a reminder that stock markets tend to lead in advance of these transitions. The corrosive focus of inflation is an essential task and measure of the Bank of Canada’s success. How are Canadians doing?
Core inflation running close to BoC target
The good news is that the Bank of Canada is focused and managing well to its inflation target — meaning keeping it under a watchful eye.
Canadian Jobs Numbers
Canadian employment numbers on October 2017 excessed expectations and rose 35K in October according to the Labour Force Survey. That was well above consensus which was expecting an increase of 15K. Despite this gain, the unemployment rate rose one tick to 6.3% as the participation rate rose one tick to 65.7%. Job gains in October were mostly from the private sector (+39K) while public sector jobs were down (-5K). This is another good signal of broad economic strength.
Enjoy the detailed reports from our National Bank Financial Partners below: