Canada: Economic momentum ebbs at the start of Q1 – NBF

Analysts at NBF suggest that their proprietary Index of Provincial Economic Momentum for Canadian economy decreased 0.3% in December at the national level, a first decline in five months.

Key Quotes

“The drop was mostly due to sagging employment and retail sales. On a regional basis, the index fell in all provinces except Saskatchewan (top table), where four of the seven indicators contributed in lifting the provincial index. A majority of indicators contributed to the drop of the IPEM in Nova Scotia, New Brunswick, British Columbia (B.C.), Prince Edward Island (PEI) and Manitoba. Employment acted as a drag in no less than 7 provinces out of ten, while housing starts, manufacturing shipments and non residential building permits did so in six provinces.”

“Retail sales and wholesale trade, for their part, had a negative impact on five of the ten provincial indices. Despite January’s decline, economic momentum increased overall in Canada over the last three months. At the provincial level, it rose in each province except Manitoba, NL and New Brunswick.”