Canadian Economy quickens contrary to expectations

According to preliminary data last month, the Canadian economy was marked by periods of activity. This fact may call into question the data on the level of a slowdown in the fourth quarter.

On Tuesday, Statistics Canada released preliminary information concerning the level of retail. This data shows that in October, sales increased by 1.5%. Also, the agency reported that the level of wholesale activity increased by 1.3% within a month, and the factory sales grew by 2%.   

Most economists expect that economic growth will be impeded. However, according to Wednesday’s data, the high inflation and growth of interest rates didn’t influence business activity and household expenditure.

Economist at Desjardins Securities Tiago Figueiredo informed the investors in his report that today the markets await the Bank of Canada senior deputy governor's answers. Tomorrow, they need to get a response from the governor. All this will help to understand how their behavior has changed due to the slowdown in inflation. Nevertheless, market activity remains high.