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Canada at the losing end of currency war, analysts say
OTTAWA — The continuing slide in the U.S. dollar has pushed the loonie closer to parity than it has been in the past five months.
None of which is good news for Canada, which finds itself currently at the losing end of a global currency war, analysts said Wednesday.
"The more the dollar appreciates and gets to parity if not higher, the worse the hit will be to our economy," said Sal Guatieri, senior economist at BMO Capital Markets.
Unlike other times when the economy was better equipped to handle a rising dollar, Canada faces a double whammy if the U.S. Federal Reserve pumps more money into the system, as it is widely expected to do at its Nov. 3 policy meeting, said David Tulk, a senior strategist at TD Securities.
For one, the Fed's exercise in so-called "quantitative easing" is a sure sign that the economy of Canada's largest trading partner is in worse shape than expected, Tulk said.
On top of that, at a time when U.S. demand for our goods is ebbing, this easing will drive the loonie even higher, making Canadian exports even a tougher sell.
The one positive in it all, Guatieri said, is that Canadian interest rates are now effectively frozen for months to come.
"Clearly, the slow growing U.S. economy and Fed easing will sideline the Bank of Canada for some time, we think until next June," Guatieri said.
That means low borrowing costs for consumers, while a higher dollar means less expensive imports to lay gifts under the Christmas tree.
But it also leaves the Canadian currency overvalued by anywhere from five to 10 per cent, Guatieri said, and it will mean much slower economic growth, which generally translates into weak employment growth.
Currency markets have been roiled lately as countries fight to protect their exports by pushing their currencies lower.
Japan surprised markets on Tuesday with a move to slash interest rates and push down the yen, while the U.S. has long argued that China's yuan is undervalued, giving that country an unfair trading advantage.
Finance Minister Jim Flaherty said Wednesday that he and his U.S. counterpart Timothy Geithner have discussed linking reform of the International Monetary Fund with increased exchange-rate flexibility by certain countries, a move that appears to turn up the heat on China and others.
Moves like Japan's, and others by South Korea and Brazil to cap strength in their currencies, threaten to derail the global recovery, IMF managing director Dominique Strauss-Kahn warned Wednesday.
Guatieri, however, doesn't expect the current situation to push Canada's economy into reverse, adding that despite July's 0.1 per cent contraction, he doesn't see that malaise spreading across the entire third quarter.
"That said, if the U.S. economy backslides, then yes, the Canadian economy would be at a serious risk of a double-dip recession."
The rapid rise in the loonie — up almost six per cent since September alone — has put it ahead of estimates that had called for the loonie to reach parity with the greenback only sometime in the second half of 2011.
Now, parity may come "any day," Guatieri said.
In a television interview, Sebastien Guly of BNP Paribas said recent moves could quickly push the dollar into a new trading range of 95 cent U.S. to $1.05 U.S..
At the close Wednesday, the Canadian dollar stood at 98.94 cents U.S., after spending a good part of the trading day above 99 cents U.S..
OTTAWA — The continuing slide in the U.S. dollar has pushed the loonie closer to parity than it has been in the past five months.
None of which is good news for Canada, which finds itself currently at the losing end of a global currency war, analysts said Wednesday.
"The more the dollar appreciates and gets to parity if not higher, the worse the hit will be to our economy," said Sal Guatieri, senior economist at BMO Capital Markets.
Unlike other times when the economy was better equipped to handle a rising dollar, Canada faces a double whammy if the U.S. Federal Reserve pumps more money into the system, as it is widely expected to do at its Nov. 3 policy meeting, said David Tulk, a senior strategist at TD Securities.
For one, the Fed's exercise in so-called "quantitative easing" is a sure sign that the economy of Canada's largest trading partner is in worse shape than expected, Tulk said.
On top of that, at a time when U.S. demand for our goods is ebbing, this easing will drive the loonie even higher, making Canadian exports even a tougher sell.
The one positive in it all, Guatieri said, is that Canadian interest rates are now effectively frozen for months to come.
"Clearly, the slow growing U.S. economy and Fed easing will sideline the Bank of Canada for some time, we think until next June," Guatieri said.
That means low borrowing costs for consumers, while a higher dollar means less expensive imports to lay gifts under the Christmas tree.
But it also leaves the Canadian currency overvalued by anywhere from five to 10 per cent, Guatieri said, and it will mean much slower economic growth, which generally translates into weak employment growth.
Currency markets have been roiled lately as countries fight to protect their exports by pushing their currencies lower.
Japan surprised markets on Tuesday with a move to slash interest rates and push down the yen, while the U.S. has long argued that China's yuan is undervalued, giving that country an unfair trading advantage.
Finance Minister Jim Flaherty said Wednesday that he and his U.S. counterpart Timothy Geithner have discussed linking reform of the International Monetary Fund with increased exchange-rate flexibility by certain countries, a move that appears to turn up the heat on China and others.
Moves like Japan's, and others by South Korea and Brazil to cap strength in their currencies, threaten to derail the global recovery, IMF managing director Dominique Strauss-Kahn warned Wednesday.
Guatieri, however, doesn't expect the current situation to push Canada's economy into reverse, adding that despite July's 0.1 per cent contraction, he doesn't see that malaise spreading across the entire third quarter.
"That said, if the U.S. economy backslides, then yes, the Canadian economy would be at a serious risk of a double-dip recession."
The rapid rise in the loonie — up almost six per cent since September alone — has put it ahead of estimates that had called for the loonie to reach parity with the greenback only sometime in the second half of 2011.
Now, parity may come "any day," Guatieri said.
In a television interview, Sebastien Guly of BNP Paribas said recent moves could quickly push the dollar into a new trading range of 95 cent U.S. to $1.05 U.S..
At the close Wednesday, the Canadian dollar stood at 98.94 cents U.S., after spending a good part of the trading day above 99 cents U.S..
Bank of Canada seen on hold as Canada loses jobs
OTTAWA — More proof the Canadian economy has cooled emerged Friday with labour data indicating a net 6,600 jobs were lost in September, giving the Bank of Canada additional reasons to refrain from rate hikes in the coming months.
Yet there were bright spots within the data — such as a 37,000 addition in full-time jobs — that gave analysts encouragement about the health of the Canadian economy.
The unemployment rate dropped, to eight per cent, although that was driven by more people opting to stop looking for a job and, among other things, return to school. Plus, the headline job loss was below the consensus call for a 10,000 gain in September.
September marked the second time in three months the economy reported monthly net job losses, following an amazing six-month streak beginning last January in which monthly job growth averaged 51,000. A total 19,900 jobs were created for the three-month period ended Sept. 30.
"There is no denying the fact that employment conditions have cooled markedly from the piping hot pace seen as recently as the spring," said Douglas Porter, deputy chief economist at BMO Capital Markets. "Renewed solid job gains will be tough to come by in the months ahead amid the lacklustre pace of underlying growth that has spilled over from the U.S. into Canada."
Jonathan Basile, vice-president of economics at Credit Suisse in New York, said the labour market is now "taking a pause," just like economic growth did in the second quarter, followed by a contraction in July. "This supports our call for (a pause) from the Bank of Canada at its next Oct 19 meeting."
In recent months, the central bank has raised its trendsetting lending rate from a record low 0.25 per cent to its current level of one per cent. A string of weaker-than-expected economic data has led markets to place very low odds on an October rate hike.
Canada's gross domestic product declined in July for the first time in almost a year, as the economy shrank 0.1 per cent during the month. The July data marked the first monthly contraction since August 2009, when GDP also shrank 0.1 per cent. That had been the only month to show a decline in economic activity since a 10-month string of reduced GDP readings between August 2008 and May 2009. The Bank of Canada had anticipated 3.5 per cent growth this year and 2.9 per cent in 2011, although those projections are expected to be revised downward when the central bank releases its updated economic outlook on Oct. 20.
Still, economists suggested the September employment data mask some underlying strength. Most important, full-time jobs gained for a second straight month, by a robust 37,100, compared to a 43,700 drop in part-time employment. Scotia Capital said this likely represented a conversion of part-time work to full-time work, which is a "mild positive" as it expands hours worked. Full-time jobs are generally better paying and more stable.
A sharp decline of 18,400 self-employed jobs — which people without jobs tend to move toward if they believe prospects will stay bleak — was offset by modest increases of 5,300 in private-sector payrolls, and a 6,500 gain in public-sector payrolls.
On a sector basis, jobs fell in the service-producing sector, 10,100, and but advanced in the key goods-producing industries by 3,500 — led by a 8,200 gain in the key manufacturing region.
Over the course of 2010, the rate of part-time job creation has outpaced full-time and, as a consequence, the number of hours worked remains below the peak level hit prior to the economic downturn, said Dawn Desjardins, assistant chief economist at Royal Bank of Canada.
"At the same time, debt levels have been rising with the household debt-to-income ratio hitting a new high early this year," she said. "The prospect of more moderate growth going forward suggests that labour market conditions will improve more slowly in the months ahead and that the unemployment rate will only gradually drift lower."
OTTAWA — More proof the Canadian economy has cooled emerged Friday with labour data indicating a net 6,600 jobs were lost in September, giving the Bank of Canada additional reasons to refrain from rate hikes in the coming months.
Yet there were bright spots within the data — such as a 37,000 addition in full-time jobs — that gave analysts encouragement about the health of the Canadian economy.
The unemployment rate dropped, to eight per cent, although that was driven by more people opting to stop looking for a job and, among other things, return to school. Plus, the headline job loss was below the consensus call for a 10,000 gain in September.
September marked the second time in three months the economy reported monthly net job losses, following an amazing six-month streak beginning last January in which monthly job growth averaged 51,000. A total 19,900 jobs were created for the three-month period ended Sept. 30.
"There is no denying the fact that employment conditions have cooled markedly from the piping hot pace seen as recently as the spring," said Douglas Porter, deputy chief economist at BMO Capital Markets. "Renewed solid job gains will be tough to come by in the months ahead amid the lacklustre pace of underlying growth that has spilled over from the U.S. into Canada."
Jonathan Basile, vice-president of economics at Credit Suisse in New York, said the labour market is now "taking a pause," just like economic growth did in the second quarter, followed by a contraction in July. "This supports our call for (a pause) from the Bank of Canada at its next Oct 19 meeting."
In recent months, the central bank has raised its trendsetting lending rate from a record low 0.25 per cent to its current level of one per cent. A string of weaker-than-expected economic data has led markets to place very low odds on an October rate hike.
Canada's gross domestic product declined in July for the first time in almost a year, as the economy shrank 0.1 per cent during the month. The July data marked the first monthly contraction since August 2009, when GDP also shrank 0.1 per cent. That had been the only month to show a decline in economic activity since a 10-month string of reduced GDP readings between August 2008 and May 2009. The Bank of Canada had anticipated 3.5 per cent growth this year and 2.9 per cent in 2011, although those projections are expected to be revised downward when the central bank releases its updated economic outlook on Oct. 20.
Still, economists suggested the September employment data mask some underlying strength. Most important, full-time jobs gained for a second straight month, by a robust 37,100, compared to a 43,700 drop in part-time employment. Scotia Capital said this likely represented a conversion of part-time work to full-time work, which is a "mild positive" as it expands hours worked. Full-time jobs are generally better paying and more stable.
A sharp decline of 18,400 self-employed jobs — which people without jobs tend to move toward if they believe prospects will stay bleak — was offset by modest increases of 5,300 in private-sector payrolls, and a 6,500 gain in public-sector payrolls.
On a sector basis, jobs fell in the service-producing sector, 10,100, and but advanced in the key goods-producing industries by 3,500 — led by a 8,200 gain in the key manufacturing region.
Over the course of 2010, the rate of part-time job creation has outpaced full-time and, as a consequence, the number of hours worked remains below the peak level hit prior to the economic downturn, said Dawn Desjardins, assistant chief economist at Royal Bank of Canada.
"At the same time, debt levels have been rising with the household debt-to-income ratio hitting a new high early this year," she said. "The prospect of more moderate growth going forward suggests that labour market conditions will improve more slowly in the months ahead and that the unemployment rate will only gradually drift lower."
Housing starts dip slightly in September
Housing starts slipped to an annual rate of 186,400 units in September, down less than 3,000 from August's figure, Canada Mortgage and Housing Corp. said Friday.
The drop was mainly due to fewer single-family homes being started, the agency said.
“Housing starts moved lower in September due to a decrease in urban single starts in Atlantic Canada and Ontario,” CMHC chief economist Bob Dugan said in a release. “Multiple starts were unchanged.”
The number of multiple starts — apartments and condos — fell by 8.1 per cent to a seasonally-adjusted 63,600 units.
Urban areas in Atlantic Canada and Ontario saw starts drop by double-digit amounts — 23.7 per cent in Atlantic Canada and 10.9 per cent in Ontario — while urban building activity in B.C., Quebec and the Prairies rose modestly.
Housing starts slipped to an annual rate of 186,400 units in September, down less than 3,000 from August's figure, Canada Mortgage and Housing Corp. said Friday.
The drop was mainly due to fewer single-family homes being started, the agency said.
“Housing starts moved lower in September due to a decrease in urban single starts in Atlantic Canada and Ontario,” CMHC chief economist Bob Dugan said in a release. “Multiple starts were unchanged.”
The number of multiple starts — apartments and condos — fell by 8.1 per cent to a seasonally-adjusted 63,600 units.
Urban areas in Atlantic Canada and Ontario saw starts drop by double-digit amounts — 23.7 per cent in Atlantic Canada and 10.9 per cent in Ontario — while urban building activity in B.C., Quebec and the Prairies rose modestly.
5 years of deficits ahead: Flaherty
OTTAWA — Canada will have endured seven years of budget deficits — the result of ramped up spending to avert the worst of the financial crisis and weaker than normal growth — before it returns to a surplus position, the federal government said yesterday in its fall fiscal update.
The update for the first time provides a specific date for when a balanced budget will emerge — 2015-16 — and builds in buffers in budget planning, much like the former Liberal government did to great criticism.
"This is the one new wrinkle here — the government has explicitly built in a small fiscal cushion," said Douglas Porter, deputy chief economist at BMO Capital Markets.
Including this fiscal year, Ottawa is set to spend roughly $110 billion more than it earns in revenue up until 2015-16 — at which time the federal government is scheduled to post a $2.6-billion surplus, based on assumptions in the fall budget update. Ottawa posted a $55.6-billion deficit for the fiscal year just past, slightly higher than anticipated due mostly to one-time charges related to payments to provinces implementing a harmonized sales tax.
The anticipated 2015-16 surplus would mean seven years of deficit financing, beginning in the 2008-09 fiscal year when the financial crisis erupted. Prior to that, the country posted 11 consecutive annual budget surpluses.
A surplus won't return sooner, according to the Department of Finance's outlook, as tax revenue growth is set to sputter on weaker global growth, especially in the United States.
"The near-term global economic outlook remains highly uncertain, with the balance of risks tilted to the downside . . . particularly in the near-term," the government said in documents released in conjunction with a speech from Finance Minister Jim Flaherty in Mississauga, Ont.
Due to these risks, the government has built in prudence into its fiscal plan — something the Conservatives, when they were in opposition, used to criticize the governing Liberals for doing, arguing such a practice led to distorted budget planning.
The government has opted to ratchet down estimates for nominal GDP levels — considered the tax base from which governments collect revenue — by $40 billion through 2015, compared to what private-sector economists have forecast. As a result, tax revenue will be $6 billion less through that period.
The projections on tax revenue "remain relatively prudent given relatively conservative growth estimates for the economy," said Paul Ferley, assistant chief economist at Royal Bank of Canada. Should tax revenue surprise on the upside, he said the unexpected gain could be deployed to reduce the deficit at a faster pace.
Still, the update showed government revenue in the last fiscal year was slightly higher than expected, largely powered by a three-per-cent gain in business tax receipts, even though corporate earnings shrank and Ottawa cut taxes on business income.
The update reflected a cautious tone about the economy, as expressed by Flaherty last week when he warned Canadians would have to adjust their expectations because the "boom times were over."
The deficit-reduction plan assumes the two-year $48-billion stimulus scheme ends on March 31, 2010, and program spending is subjected to curbs in growth. However, Flaherty has moved to ease some measures in the face of a slowing economy, such as capping planned increases in Employment Insurance hikes, which will cost Ottawa $5.3 billion in lost revenue over the forecast period; and indicating some stimulus cash may flow after March 31 for nearly-finished infrastructure projects.
"We're going to continue to watch and monitor. And we're not going to be inflexible," Flaherty told reporters on the possibility of additional fiscal measures should economic conditions deteriorate unexpectedly.
Meanwhile, the update also suggested the government stands to benefit from exceptionally low rates. Charges to finance the federal debt — which stands at $519 billion, or 34 per cent of GDP — are expected to be roughly $3.5 billion less than anticipated through 2015. Porter said this would help the government finance its proposed cap on EI premium hikes.
OTTAWA — Canada will have endured seven years of budget deficits — the result of ramped up spending to avert the worst of the financial crisis and weaker than normal growth — before it returns to a surplus position, the federal government said yesterday in its fall fiscal update.
The update for the first time provides a specific date for when a balanced budget will emerge — 2015-16 — and builds in buffers in budget planning, much like the former Liberal government did to great criticism.
"This is the one new wrinkle here — the government has explicitly built in a small fiscal cushion," said Douglas Porter, deputy chief economist at BMO Capital Markets.
Including this fiscal year, Ottawa is set to spend roughly $110 billion more than it earns in revenue up until 2015-16 — at which time the federal government is scheduled to post a $2.6-billion surplus, based on assumptions in the fall budget update. Ottawa posted a $55.6-billion deficit for the fiscal year just past, slightly higher than anticipated due mostly to one-time charges related to payments to provinces implementing a harmonized sales tax.
The anticipated 2015-16 surplus would mean seven years of deficit financing, beginning in the 2008-09 fiscal year when the financial crisis erupted. Prior to that, the country posted 11 consecutive annual budget surpluses.
A surplus won't return sooner, according to the Department of Finance's outlook, as tax revenue growth is set to sputter on weaker global growth, especially in the United States.
"The near-term global economic outlook remains highly uncertain, with the balance of risks tilted to the downside . . . particularly in the near-term," the government said in documents released in conjunction with a speech from Finance Minister Jim Flaherty in Mississauga, Ont.
Due to these risks, the government has built in prudence into its fiscal plan — something the Conservatives, when they were in opposition, used to criticize the governing Liberals for doing, arguing such a practice led to distorted budget planning.
The government has opted to ratchet down estimates for nominal GDP levels — considered the tax base from which governments collect revenue — by $40 billion through 2015, compared to what private-sector economists have forecast. As a result, tax revenue will be $6 billion less through that period.
The projections on tax revenue "remain relatively prudent given relatively conservative growth estimates for the economy," said Paul Ferley, assistant chief economist at Royal Bank of Canada. Should tax revenue surprise on the upside, he said the unexpected gain could be deployed to reduce the deficit at a faster pace.
Still, the update showed government revenue in the last fiscal year was slightly higher than expected, largely powered by a three-per-cent gain in business tax receipts, even though corporate earnings shrank and Ottawa cut taxes on business income.
The update reflected a cautious tone about the economy, as expressed by Flaherty last week when he warned Canadians would have to adjust their expectations because the "boom times were over."
The deficit-reduction plan assumes the two-year $48-billion stimulus scheme ends on March 31, 2010, and program spending is subjected to curbs in growth. However, Flaherty has moved to ease some measures in the face of a slowing economy, such as capping planned increases in Employment Insurance hikes, which will cost Ottawa $5.3 billion in lost revenue over the forecast period; and indicating some stimulus cash may flow after March 31 for nearly-finished infrastructure projects.
"We're going to continue to watch and monitor. And we're not going to be inflexible," Flaherty told reporters on the possibility of additional fiscal measures should economic conditions deteriorate unexpectedly.
Meanwhile, the update also suggested the government stands to benefit from exceptionally low rates. Charges to finance the federal debt — which stands at $519 billion, or 34 per cent of GDP — are expected to be roughly $3.5 billion less than anticipated through 2015. Porter said this would help the government finance its proposed cap on EI premium hikes.
Enriched jobless benefits will be extended
OTTAWA — In a fresh sign that the federal government is nervous about job losses, it quietly announced Tuesday a limited extension of three pilot projects designed to enrich employment insurance benefits in areas where unemployment remains stubbornly high.
The announcement follows a major lobbying campaign by unions which had warned the loss of the pilot programs, initiated before the 2008 recession, would leave thousands of workers in dire economic straits.
It also coincides with Finance Minister Jim Flaherty's economic update, during which he repeated the federal government would not extend the EI enhancements it introduced almost two years ago to counter the effects of the recession.
Fisheries Minister Gail Shea, who made the EI announcement in Prince Edward Island, said the government decided the pilot projects need to continue to help Canadians through the economic recovery.
"A priority of this government is to help Canadians find jobs as the economy continues to recover," Shea said in a statement. "Our government is continuing support for these pilots and giving a hand up to Canadian workers who need it most."
One project, which allows EI claimants to calculate their benefits based on their highest earning weeks in the previous year, was set to expire next week. It will be extended through to June 2011.
The other two were to end in early December. One allows EI claimants to earn extra money while receiving benefits, and will also be extended to June. The other provides an extra five weeks of support in 21 high unemployment regions, including areas of northern British Columbia, the Prairies, Ontario and Quebec, and will go until Sept. 15, 2012.
The statement says the extended benefits could expire earlier in some areas if there is a sustained recovery.
OTTAWA — In a fresh sign that the federal government is nervous about job losses, it quietly announced Tuesday a limited extension of three pilot projects designed to enrich employment insurance benefits in areas where unemployment remains stubbornly high.
The announcement follows a major lobbying campaign by unions which had warned the loss of the pilot programs, initiated before the 2008 recession, would leave thousands of workers in dire economic straits.
It also coincides with Finance Minister Jim Flaherty's economic update, during which he repeated the federal government would not extend the EI enhancements it introduced almost two years ago to counter the effects of the recession.
Fisheries Minister Gail Shea, who made the EI announcement in Prince Edward Island, said the government decided the pilot projects need to continue to help Canadians through the economic recovery.
"A priority of this government is to help Canadians find jobs as the economy continues to recover," Shea said in a statement. "Our government is continuing support for these pilots and giving a hand up to Canadian workers who need it most."
One project, which allows EI claimants to calculate their benefits based on their highest earning weeks in the previous year, was set to expire next week. It will be extended through to June 2011.
The other two were to end in early December. One allows EI claimants to earn extra money while receiving benefits, and will also be extended to June. The other provides an extra five weeks of support in 21 high unemployment regions, including areas of northern British Columbia, the Prairies, Ontario and Quebec, and will go until Sept. 15, 2012.
The statement says the extended benefits could expire earlier in some areas if there is a sustained recovery.
Canadians struggle to save money: survey
OTTAWA -- Canadians are having a hard time saving money, according to poll results released Wednesday.
The Royal Bank of Canada survey showed 38 per cent of respondents couldn't save at all. The most common reason, given by 30 per cent, was that they have nothing left over after paying their bills. The other eight per cent said it was because of their impulse-buying habits.
Just more than a third - 33 per cent - said they make regular contributions to a savings account, while 29 per cent said they put money away "from time to time."
The survey had 27 per cent of respondents saying they have reduced the amount they are putting away for savings in the last two years, 19 per cent said they have stopped saving completely and just 12 per cent said they have increased the amount they are saving.
More than half - 57 per cent - said they found difficulty in achieve their savings goals, and 55 per cent expressed frustration in remaining disciplined in savings habits.
"Our clients tell us that one of the main challenges to saving is paying yourself first - being able to put aside money before it gets spent," Maria Contreras, product manager for savings accounts at RBC, said in a statement.
"We advise our clients to start slowly by setting aside small amounts. Starting by setting up a separate, dedicated savings account and an automatic saving program with a small amount each week from your paycheque can go a long way in helping you reach your savings goals."
The results were based on an online survey carried out by TNS of 1,121 Canadians in August.
OTTAWA -- Canadians are having a hard time saving money, according to poll results released Wednesday.
The Royal Bank of Canada survey showed 38 per cent of respondents couldn't save at all. The most common reason, given by 30 per cent, was that they have nothing left over after paying their bills. The other eight per cent said it was because of their impulse-buying habits.
Just more than a third - 33 per cent - said they make regular contributions to a savings account, while 29 per cent said they put money away "from time to time."
The survey had 27 per cent of respondents saying they have reduced the amount they are putting away for savings in the last two years, 19 per cent said they have stopped saving completely and just 12 per cent said they have increased the amount they are saving.
More than half - 57 per cent - said they found difficulty in achieve their savings goals, and 55 per cent expressed frustration in remaining disciplined in savings habits.
"Our clients tell us that one of the main challenges to saving is paying yourself first - being able to put aside money before it gets spent," Maria Contreras, product manager for savings accounts at RBC, said in a statement.
"We advise our clients to start slowly by setting aside small amounts. Starting by setting up a separate, dedicated savings account and an automatic saving program with a small amount each week from your paycheque can go a long way in helping you reach your savings goals."
The results were based on an online survey carried out by TNS of 1,121 Canadians in August.
Canada's West, North most plagued by crime: Survey
TORONTO — Canada's hot spot for crime — climbing 90 per cent higher than the national average — is a northern B.C. city whose population doesn't even break 100,000.
Prince George, B.C., topped the list of Canadian cities with the highest crime rates, according to an annual survey released Thursday by Maclean's magazine.
The magazine said a 77,000-person city claiming the top spot is a "shameful reflection" of the fact that Canada's most violent cities are located in the country's North and West.
The survey's top 10 worst crime offenders — as measured in part by incidents of homicide, sexual assault, aggravated assault, robbery, breaking and entering, and auto theft — are all west of Winnipeg.
The third annual survey by the weekly magazine used Statistics Canada data to tabulate the results — both through the agency's Crime Severity Index and six key groupings of crime stats.
"(The) survey shows an epidemic of violence in the North, gang-plagued cities in the West and relative safety in Ontario and Quebec," the magazine said.
Victoria ranked a close second, with a crime rate 81 per cent higher than the national average, followed by Saskatchewan's major metropolitan centres, Regina and Saskatoon, with 73 and 69 per cent scores, respectively. Rounding out the Top 5 was Alberta's oil boomtown, Fort McMurray, at 68 per cent above average.
Meanwhile, the cities with the lowest crime rates were all located in Ontario and Quebec.
For the third year running, Caledon, Ont., a community 40 kilometres northwest of Toronto, took the title of Canada's safest city, with a crime rate 70 per cent below the national average.
It was followed by Ontario's Wellington County and Halton Region, both at 58 per cent below the national average, then the Quebec City suburb of Levis (51 per cent), and Nottawasaga, Ont. (50 per cent).
A Maclean's statement says a "complex combination of social problems, unemployment, sexual and physical abuse, and drug and alcohol abuse" are the likely contributors to high urban crime rates. It added that the Canadian West's crime problem appears to be "entrenched," while the North's was "extreme."
The survey found half of the Top 14 most crime-ridden cities were located in B.C. despite of the fact the province recorded a nine per cent drop in crime severity overall.
TORONTO — Canada's hot spot for crime — climbing 90 per cent higher than the national average — is a northern B.C. city whose population doesn't even break 100,000.
Prince George, B.C., topped the list of Canadian cities with the highest crime rates, according to an annual survey released Thursday by Maclean's magazine.
The magazine said a 77,000-person city claiming the top spot is a "shameful reflection" of the fact that Canada's most violent cities are located in the country's North and West.
The survey's top 10 worst crime offenders — as measured in part by incidents of homicide, sexual assault, aggravated assault, robbery, breaking and entering, and auto theft — are all west of Winnipeg.
The third annual survey by the weekly magazine used Statistics Canada data to tabulate the results — both through the agency's Crime Severity Index and six key groupings of crime stats.
"(The) survey shows an epidemic of violence in the North, gang-plagued cities in the West and relative safety in Ontario and Quebec," the magazine said.
Victoria ranked a close second, with a crime rate 81 per cent higher than the national average, followed by Saskatchewan's major metropolitan centres, Regina and Saskatoon, with 73 and 69 per cent scores, respectively. Rounding out the Top 5 was Alberta's oil boomtown, Fort McMurray, at 68 per cent above average.
Meanwhile, the cities with the lowest crime rates were all located in Ontario and Quebec.
For the third year running, Caledon, Ont., a community 40 kilometres northwest of Toronto, took the title of Canada's safest city, with a crime rate 70 per cent below the national average.
It was followed by Ontario's Wellington County and Halton Region, both at 58 per cent below the national average, then the Quebec City suburb of Levis (51 per cent), and Nottawasaga, Ont. (50 per cent).
A Maclean's statement says a "complex combination of social problems, unemployment, sexual and physical abuse, and drug and alcohol abuse" are the likely contributors to high urban crime rates. It added that the Canadian West's crime problem appears to be "entrenched," while the North's was "extreme."
The survey found half of the Top 14 most crime-ridden cities were located in B.C. despite of the fact the province recorded a nine per cent drop in crime severity overall.
September home sales down: CREA
The average price of a home sold in Canada in September was in line with that of a year earlier, even as 19.8 per cent fewer sales were registered.
The downtown Vancouver skyline shows condo development in the city. The average price of a Canadian home sold in September matched that of a year earlier. (Albert Normandin/Associated Press)
The Canadian Real Estate Association said Friday that sales activity was up three per cent over August's level, but almost 20 per cent below the high volumes seen in September 2009.
That month was the best September ever for Canadian home sales, as Canadians rushed to buy in anticipation of interest rates going up, which they did when the Bank of Canada hiked its overnight lending rate in June.
April was the busiest month for home sales this year, and activity in September was 15 per cent below that level. It's expected annual comparisons will pale for the next several months because of the inflated levels seen at the end of 2009.
Nationally, the average price of a Canadian home sold through the Multiple Listing Service was $331,089 during the month. That's in line with the level of September 2009 but slightly ahead of the $324,928 it stood at in August 2010.
"Supply and demand are rebalancing, and that's keeping prices steady in many markets," CREA president George Pahud said.
Sherry Cooper, chief economist at the Bank of Montreal, said back-to-back advances in August and September figures followed an ugly slide in the first seven months of the year that saw sales plunge 30 per cent from peak to trough.
"The Canadian housing market has returned to balance, which still feels like a stark change from the rip-roaring sellers' market seen (earlier this year)," she said in a note.
Inventory decreasing
The number of months of inventory represents the period it would take to sell current inventories at the current rate of sales activity, and measures the balance between housing supply and demand. The seasonally adjusted number of months of inventory stood at 6.6 months at the end of September on a national basis. This is down from 6.9 months in August, and 7.2 months in July.
"Mortgage lending rates eased in the third quarter, which helped support sales activity over the past couple of months," CREA's chief economist Gregory Klump said.
Two-thirds of local markets posted monthly increases in September, led by Winnipeg, Calgary, and Montreal, CREA said. Sales declined in only one province, Nova Scotia.
Read more: http://www.cbc.ca/canada/story/2010/10/15/crea-september-housing.html#ixzz12lioU9S5
The average price of a home sold in Canada in September was in line with that of a year earlier, even as 19.8 per cent fewer sales were registered.
The downtown Vancouver skyline shows condo development in the city. The average price of a Canadian home sold in September matched that of a year earlier. (Albert Normandin/Associated Press)
The Canadian Real Estate Association said Friday that sales activity was up three per cent over August's level, but almost 20 per cent below the high volumes seen in September 2009.
That month was the best September ever for Canadian home sales, as Canadians rushed to buy in anticipation of interest rates going up, which they did when the Bank of Canada hiked its overnight lending rate in June.
April was the busiest month for home sales this year, and activity in September was 15 per cent below that level. It's expected annual comparisons will pale for the next several months because of the inflated levels seen at the end of 2009.
Nationally, the average price of a Canadian home sold through the Multiple Listing Service was $331,089 during the month. That's in line with the level of September 2009 but slightly ahead of the $324,928 it stood at in August 2010.
"Supply and demand are rebalancing, and that's keeping prices steady in many markets," CREA president George Pahud said.
Sherry Cooper, chief economist at the Bank of Montreal, said back-to-back advances in August and September figures followed an ugly slide in the first seven months of the year that saw sales plunge 30 per cent from peak to trough.
"The Canadian housing market has returned to balance, which still feels like a stark change from the rip-roaring sellers' market seen (earlier this year)," she said in a note.
Inventory decreasing
The number of months of inventory represents the period it would take to sell current inventories at the current rate of sales activity, and measures the balance between housing supply and demand. The seasonally adjusted number of months of inventory stood at 6.6 months at the end of September on a national basis. This is down from 6.9 months in August, and 7.2 months in July.
"Mortgage lending rates eased in the third quarter, which helped support sales activity over the past couple of months," CREA's chief economist Gregory Klump said.
Two-thirds of local markets posted monthly increases in September, led by Winnipeg, Calgary, and Montreal, CREA said. Sales declined in only one province, Nova Scotia.
Read more: http://www.cbc.ca/canada/story/2010/10/15/crea-september-housing.html#ixzz12lioU9S5