Author: Sherry Cooper

There has been much hand-wringing about the overheated housing markets in Vancouver and Toronto. Accelerating price gains in the past year are indicative of a buying frenzy, especially in Vancouver, which is clearly unsustainable. New listings are way down, new supply is constrained, and buyer euphoria seems to be suggestive of panic fear of missing…

Another woeful jobs report in Canada for the month of July triggers further pessimism. Following three consecutive months of stagnant employment, payrolls fell by a much-worse-than-expected 31,000 in July as the unemployment rate increased 0.1 percentage point to 6.9 percent. Gloomily, all of the loss was in full-time employment, which fell by 71,000 from June…

On a hot summer Friday morning, Canadian and U.S. data gatherers posted GDP figures.  The numbers look pretty bad and both countries, but fortunately, digging deeper, they were not as bad as at first glance. Canadian GDP Data The May figure for Canadian Gross Domestic Product by Industry posted a decline of 0.6 percent, but…

To the surprise of no one, the Fed once again refrained from raising interest rates even though the U.S. economy has posted surprising strength in recent weeks. Following a very weak jobs report in May, the June figures showed a considerable bounce back. Retail sales and housing activity have also surprised on the high side….

The decision by British voters to leave the European Union (EU) has shocked markets and will no doubt lead to continued uncertainty for an extended period. Stock markets around the world are reeling, the British pound has taken an unprecedented nosedive, commodity prices with the exception of gold are plunging and interest rates are falling…

No one expected the Federal Reserve to raise rates today even though they have been criticized by some for lacking credibility. When the target overnight fed funds rate was first hiked late last year, the Federal Open Market Committee (FOMC) forecast four rate hikes this year. Now, most Committee members believe there will be only…

From Business News Network (BNN): The hottest real estate markets in Canada continue to defy gravity with home sales in Toronto last month reaching a record level and prices jumping 16 per cent. Sherry Cooper, Chief Economist, Dominion Lending Centres, has not used the word “bubble” to describe conditions in Toronto or Vancouver, but says…

First on the U.S. Jobs Front The May employment report was released this morning in the US and it was shockingly weak–indeed, the weakest number in almost 6 years. Nonfarm payroll employment was up only 38,000, well below the market expectation of 160,000. Not only was May incredibly weak, but the March and April job…

In a short but not-so-sweet missive, the Bank of Canada left its target overnight rate unchanged at 1/2 percent as expected. The Bank, however, sharply reduced its forecast for second quarter Canadian growth owing to the devastating wildfires in Alberta. The Bank’s economists estimate that the fire-related damage and shutdown of oil production will reduce…