Thursday, November 1, 2012

Canada GDP “Unexpectedly” Shrinks; Pollyannas Come Out Of Woodwork

by Mike Shedlock
MISH’S Global Economic Trend Analysis

Economists who cannot see anything but the rear view mirror were surprised to learn Canadian Economy Shrinks as Oil, Mining Slump.
The Canadian economy shrank unexpectedly in August, pointing to a sharp third-quarter slowdown in growth from the first half and reinforcing the Bank of Canada’s message that interest rate hikes are less imminent.
The surprising 0.1 percent contraction in August from July reflected broad weakness across most industries, prompting economists to revise forecasts down. The Canadian dollar weakened to below parity with its U.S. counterpart.
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