Recent Canadian employment reports have been mixed, with strength in Ontario largely offset by weakness just about everywhere else. The data have seemed to suggest that the Bank of Canada's weak dollar policy (they don't call it that, but that's what it is) might be having the desired effect of goosing the non-resource sectors of the economy, especially manufacturing, which is largely concentrated in southern Ontario.
Now we may have proof. A new StatsCan report today shows that Canada's manufacturing output reached an all-time high in January, led by shipments of autos, auto parts and food products. Although the bulk of the improvement was seen in Ontario and Quebec, manufacturing output also rose in six other provinces, with only two (including beleaguered Alberta) showing declines.
It's only one month's data, but it's another small piece of evidence suggesting that the downward-revised 2016 GDP growth forecasts recently posted by the Finance Ministry, Bank of Canada and most private sector analysts may turn out to be excessively pessimistic.
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