"I don't think this is a signal there is a lot of positive momentum for the Canadian economy. The employment growth that we are getting just isn't consistent enough to make some headway in lowering the unemployment rate."
-Sonya Gulati, senior economist at Toronto-Dominion Bank
While Canada is suffering from the so-called "slowest export recovery since World War II", which has been a major drag on the economy so far, mood among Canadian businesses improved, while labour market is showing signs of stabilisation, suggesting the economy can gain momentum in the nearest future.
On Friday Statistics Canada said the economy added 59,200 jobs in August, while the unemployment rate fell to 7.1% from 7.2% a month earlier. Analysts, however, expected a 20,000 jobs increase and no changed in the jobless rate. Even taking into account these figures, Canada's labour market remains on the pace for slowest advance in hiring since 2001.
In a separate report the Richard Ivey School of Business pointed out the nation's business activity expanded in August. The gauge of activity in the public and private sector inched back into positive territory, touching 51.0 last month, from 48.4 a month earlier. The employment index fell to 43.6, from 50.4, while the measure of inventories slid to 48.7. The PMI index is posting positive data for the fifth consecutive month, reflecting positive trend in the economy after recent shocks.
© Dukascopy Bank SA