By Ketki Saxena
Investing.com – 4 things to watch in the Canadian economy in the week ahead
View our full economic calendar.
(August), Wednesday October 5
Statistics Canada will release its international merchandise trade figures for the month of August on Wednesday. In July, Canada’s merchandise trade surplus fell to $4.1 billion in July, weighed down by lower prices which impacted the total value of exports for the month. For August, RBC (TSX:) Deputy Chief Economist Nathan Janzen and Economist Claire Fan “expect Canada’s trade surplus in commodities to tighten further in August, with the decline oil prices affecting nominal exports more than imports”.
(Sep), Thursday, October 6
On Thursday, investors will be watching the Ivey Purchasing Managers Index (PMI), which measures the level of purchasing manager activity in Canada. In August, the index came in at 60.9 in August, a sharp increase from July’s 49.6, but still below the August 2021 figure of 66. Another PMI, the S&P Index Global Canada Manufacturing Purchasing Managers’ Index released today showed Canadian manufacturing activity contracted for a second consecutive month in August as demand was hit by macroeconomic weakness and rising interest rates .
Speech by Macklem, “Current Economic Situation” Thursday, October 6
Also on Thursday, Canadian investors will be watching comments on the economy and forward guidance on monetary policy from Bank of Canada Governor Tiff Macklem during his speech to the Halifax Chamber of Commerce on Thursday. The speech, titled “Current Economic Situation,” is scheduled to begin at 11:50 p.m. ET and will be live on webcast.
(Sep), Friday, October 7
On Friday, Statistics Canada will release its Labor Force Survey for September. In August, the economy lost 40,000 jobs, but analysts remain optimistic about a slight rise in September. RBC analysts note that “employment in Canada likely rose slightly in September after three consecutive monthly declines fueling a 15,000 increase in overall employment.” The analysts of Scotiabank (TSX:) and ING are also expecting an uptick for the month, supported by an economy that has remained relatively robust despite fears of a recession.