Canada’s GDP Grows in Fourth Quarter 2012.03.02

März 02, 2012 23:04

In Canada the gross domestic product (GDP) in real terms rose by 0.4% in the fourth quarter after the third quarter experienced an increase of 1.0%. Consumer spending and exports were the largest contributors for the growth while domestic demand grew 0.5%. Consumer spending on goods and services appreciated 0.7% in the fourth quarter. Furthermore, their purchases of durable goods increased 2.1%. Business purchases in plant and equipment grew 2.0%. On the other hand, housing investment lowered to 0.8% in the fourth quarter. Exports increased 1.1% in the fourth quarter while imports increased 0.5%. Overall, goods-producing and service industries rose 0.5% and 0.4% respectively, in the fourth quarter.

In other news, Markit released Britain’s construction sector activity reporting an increase to 54.3, an 11 month high (since March 2011), in February from January’s 51.4 figure. The acceleration was due to gains in new work intakes. Despite this news, the accumulation of new business and output were not enough to prevent a drop in employment. Job increases had been negated at some companies due to reorganizations, thereby putting additional work on other employees. Furthermore, the region continued to experience an accrual in business confidence for the fourth successive period. Britain’s construction companies reported growth was the fastest it had been in 21 months. Additionally, optimism builds over an overall healthier economy, increasing client sentiment, and rising work prospects.

The GBPCAD dropped 80 pips today and tested support at 1.5650. With Oil prices hovering near $108 a barrel, we expect the Canadian Dollar to get stronger due to the political unrest over Iran and Syria in the Middle East. The U.K. economy is far from avoiding a recession. If the GBPCAD breaks below 1.5600, we expect the pair to target 1.5550 which was the low established on January 18th.

Eugene Ross, Analyst

Admiral Markets

At any use of the analytical material taken from a site of company Admiral Markets, and the secondary publication on any other resources, the rights to intellectual property for a dealing center «Admiral Markets», the reference to a company site is obligatory.

Admirals Eine Komplettlösung für das Bezahlen, Investieren und Verwalten Ihres Geldes

Admirals ist mehr als ein Broker. Wir sind der Dreh-und Angelpunkt für Ihre Finanzen, indem wir Ihnen eine breite Palette von Finanzprodukten und -dienstleistungen anbieten. Wir machen es möglich, persönliche Finanzen durch eine Komplettlösung für das Investieren, Ausgeben und Verwalten von Geld anzugehen.