Light on the horizon for Canada?
Canadian entrepreneurs are feeling warmer about the business climate, saying now that they are more confident than in the fall that they will grow in their sales this year. Even more significantly, plans to invest in equipment are at their highest level in more than two years. Essentially, the business community is betting on sustained domestic demand, a turnaround in exports and the energy sector.
Crude oil prices are still not out of the woods, however, with WTI giving up close to 4% yesterday. Although the output cuts announced by OPEC and other producer nations appear to be under implementation, observers fear that drilling activity in the United States, which continues to increase, will make up for any missing inventory. Moreover, Iraq has apparently announced its intention to ramp up its daily oil exports in February to a record level of 3.641 million barrels.
This morning, we’ll have an opportunity to take stock of our real estate sector when housing starts data are released at 8:15, followed at 8:30 by building permits.
