Consistent with the trend observed in the Andersen Reports over the last few months, it seems that business confidence indicators are far more pessimistic than the economic indicators. (For more on the difference between confidence and economic indicators, please see the Peter Andersen Report from August 26, 2011.)
What really seems to be happening is that Canada is hovering in the realm of moderate economic growth in most areas; however, the uncertainty of Greece and the European debt crisis, and the US economy’s sluggish return, are dominating the media and undermining confidence. Both Peter Andersen in this month’s report, and Peter G. Hall in his weekly commentary for Export Development Canada reinforce this observation – and both point out that, even with the ongoing uncertainty in Europe, domestically Canada is growing well, and the increase in new building starts in both the US and China will support export growth in Canada’s construction materials sector.
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