Bank of Canada Declares Recession Over

July 23, 2009

How do they know?

In comments to reporters  accompanying the issuance of July 23’s Monetary Policy Report Bank Governor Mark Carney declared the recession over in Canada.

Here's the good news.

Here's the good news.

“We believe the economy will grow this quarter. The rate of growth will pick up to the end of the year and into 2010.”

The bank is forecasting economic growth of about 1.3% in the current quarter through September. Three percent (3%) through next year.

Ford’s $2.8 billion earnings surprise just might be evidence to that effect, and  a sign to our industry that better days are, to use Bank Governor Carney’s terminology, ‘nascent.’

PMPA’s June  Business Trends Report- available to members here –  showed sales up a mere three points  to 68 from May’s 65.  However, of the 102 shops reporting, 42 % reported double digit sales increases in June compared to May. The average increase of those shops was 32.9%.

This is one time that we certainly won’t mind if this Canadian Economic Weather  makes it down to us South of the border.

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