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Canada

Canada December 2024

12/9/2024

 
Unemployment Rises to 6.8%  
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  • The unemployment rate rose to 6.8% in November after holding steady at 6.5% in October. Unemployment was down 2.2% year over year.
  • Unemployment reached a record low of 4.9% in June and July 2022, and peaked during the pandemic.
  • The economy added a total of about 51,000 new jobs, with 47,000 new jobs, including 39,000 jobs in wholesale and retail trade and 18,000 in construction.
  • Employment increased or held steady in most provinces.
  • Average hourly wages increased 4.6% to $35.59 year over year in September after rising 5.0% in August.
 
Consumer Prices
The Consumer Price Index (CPI) rose 2.0% year over year in October after rising 1.6% year over year in September, according to Statistics Canada. Shelter prices remain the largest contributor to overall yearly inflation, but have been easing. The cost of groceries continues to outpace headline inflation. Overall, prices for services in Canada decelerated in October, showing the smallest yearly increase since January 2022, while prices for goods edged up 0.1% on last year following a 1% drop in September.
 
Housing and Construction News
Housing starts continued trending upwards in October, rising 8% after rebounding in September. The seasonally adjusted annual rate of housing starts was flat at 243,522 units after rising in September. The actual number of year over year housing starts is similar to last year but there has been higher activity in the Prairie provinces, Québec and the Atlantic provinces, while Ontario and British Columbia have seen declines in all housing types.
 
Canadian home sales rose 7.7% in October, reaching the highest level since April 2022. The jump in home sales was a big surprise, most likely tied to a surge in listings following recent interest rate cuts. Industry watchers noted that there will probably not be another influx of new listings until spring and mortgage rates are near their expected lows. There were 174,458 properties listed for sale on all Canadian MLS(R) Systems at the end of October 2024, up 11.4% from a year earlier but still below historical averages for that time of the year.
 
The actual (not seasonally adjusted) national average home price was $696,166 in October 2024, up 6% from October 2023. There were 3.7 months of inventory on a national basis at the end of October, down from 4.1 months at the end of September and the lowest level in more than a year. The long-term average is 5.1 months of inventory, with a seller's market being below about 3.6 months and a buyer's market being above 6.5 months.
 
Q3 GDP Rises 0.3%
GDP rose 0.3% in the third quarter
after rising 0.5% in both the first and second quarters. Housing investment increased 0.8% in the third quarter, the first expansion since the third quarter of 2023. Third quarter growth was due to higher resale
 
Retail Sales Increase 0.4%
Retail sales increased 0.4% to $66.9 billion in September
after rising to $66.6 billion in August. Sales were up in six of nine subsectors and were led by increases at food and beverage retailers. Sales at building material and garden equipment and supplies dealers rose 3.0% in September.
 
Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were up 1.4% in September after falling 0.4% in August. In volume terms, retail sales increased 0.8% in September.
 
Retail sales were up 0.9% in the third quarter, while in volume terms, retail sales increased 1.3%.
 
Retail Ecommerce Sales Rise 3.3%
Seasonally adjusted retail ecommerce sales were up 3.3%
to $4.1 billion in September, accounting for 6.2% of total retail trade, compared with 6.0% in August, according to Statistics Canada.
 
Retail Notes
Canadian Tire reported that Q3 revenue fell 1.4%
to $4.19 billion, which was still better than the $4.15 billion analysts expected. Customer data shows that the series of recent interest rates cuts has not boosted household spending yet. Despite all that, the retailer still recorded record profits. Foreign exchange made a big negative impact this year; they expect it to be even more pronounced next year.
 
Canadian customers are making fewer trips to stores and spending less when they go. Also, CEO Greg Hicks noted that job growth is not keeping up and many Canadians are still struggling.
 
Canadian Tire’s Sports Partnerships team won the Gold at the Sports Marketing Awards for the Best New Initiative and the Award of Distinction for Diversity, Equity & Inclusion for their outstanding work on the Women's Sports Initiative, a multi-million-dollar investment by Canadian Tire Corporation. The initiative represents a commitment to direct a minimum of 50% of their sponsorship dollars towards women's professional sport by 2026. 
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