Highlights
United States
• U.S. non-farm payrolls disappointed this week with a gain of only 39K in November, following October’s gain of 172K.
• Nonetheless, signs continue to build that U.S. economic growth and therefore job growth should continue to improve in 2011. One dissapointing month does not alter this view.
• While progress will continue, the pace will be moderate and the unemployment, which in November rose to 9.8%, will remain elevated and inflation will remain subdued.
Canada
• This week saw the release of three lukewarm Canadian data reports that all served to temper expectations that the economic recovery would be smooth sailing going forward.
• On the heels of a large deterioration in net trade, Canada ’s current account deficit widened to $17.5 billion in Q3 (4.3% of GDP), the largest level on record since 1946.
• Q3 real GDP growth came in at disappointing 1.0% annualized growth, below the Bank of Canada’s forecast. However, all signs tell us that there is upside potential going forward.
• In November, the national economy squeezed out 15K net new jobs, better numbers than the last few months, but a far cry from the numbers seen earlier in the year. Job growth is likely to remain lackluster in the next few months as there is simply not enough incentive for firms to regain their former robust pace of hiring.
Click here to read full report
United States
• U.S. non-farm payrolls disappointed this week with a gain of only 39K in November, following October’s gain of 172K.
• Nonetheless, signs continue to build that U.S. economic growth and therefore job growth should continue to improve in 2011. One dissapointing month does not alter this view.
• While progress will continue, the pace will be moderate and the unemployment, which in November rose to 9.8%, will remain elevated and inflation will remain subdued.
Canada
• This week saw the release of three lukewarm Canadian data reports that all served to temper expectations that the economic recovery would be smooth sailing going forward.
• On the heels of a large deterioration in net trade, Canada ’s current account deficit widened to $17.5 billion in Q3 (4.3% of GDP), the largest level on record since 1946.
• Q3 real GDP growth came in at disappointing 1.0% annualized growth, below the Bank of Canada’s forecast. However, all signs tell us that there is upside potential going forward.
• In November, the national economy squeezed out 15K net new jobs, better numbers than the last few months, but a far cry from the numbers seen earlier in the year. Job growth is likely to remain lackluster in the next few months as there is simply not enough incentive for firms to regain their former robust pace of hiring.
Click here to read full report
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