Hidden far down the first page summary of this month’s Andersen Monthly Economic Report is one of the few bright sparks in the Canadian economic picture: “Ongoing solid growth in business investment.”
Why should business leaders bother noting this?
Peter G. Hall of Export Development Canada comments that business investment, generally a good indicator of future growth, was strong across all Canadian business sectors in 2011. During the first half of 2012, investment continued at a similar rate in the manufacturing and mining sectors, although it faltered in machinery and equipment.
Despite this divergence in investment patterns, Dr Andersen points out solid growth in full-time employment reinforces a more optimistic business outlook; and an increase in large consumer purchases, such as vehicles, suggests improved consumer confidence that may help to support business investments.
Overall, while Canadian economic growth is expected to be far from stellar in 2012, both Dr Andersen and Peter G. Hall agree that there is potential for solid performance.
TEC Canada members receive the Andersen report by email each month.
Economic Development Canada’s Weekly Commentary with Vice-President and Chief Economist, Peter Hall: Pondering the Pause in Investment