Canadian GDP FALLS - Ahh ... the leadership of Stephen Harper!
In May, GDP fell 0.1 per cent from the previous month, versus a consensus expectation from economists for growth of 0.2 per cent – establishing what looks like an unsettling picture of, at best, an economy that is floating just inches above a technical recession.
“The setback was the fourth decline in the past six months, and leaves output up a meagre 0.6 per cent in the past year, far below the economy's 10-year trend of 3 per cent,” said Douglas Porter, deputy chief economist at BMO Nesbitt Burns, in a note.
Of all things, energy production was the biggest source of the setback in May, due to a drop in natural gas extraction. However, mining activity, financial activity and auto manufacturing also fell during the month.
“If we assume a flat June reading for GDP, the second quarter might only be as high as 0.5 per cent. That suggests the Bank of Canada will not really be in a position to raise rates until well into 2009,” said Charmaine Buskas, senior economics strategist at TD Securities, in a note.
The Globe & Mail
GDP drop 'a bit of a shocker' ....
..... MEANWHILE, SHELL POSTS $11.6 BILLION Q2 PROFIT ....... ahhh ... the 'unfettered free market' ;)