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The signs increasingly indicate Canada will be out of recession by the end of the year, if not slightly sooner, even though consumers remain wary and unemployment is ticking higher, new data show.
Two separate economic indexes that gauge the conditions that create economic growth rose Tuesday, suggesting the economy was beginning to heal and growth would resume before the end of the year. However, without consumers on board, that growth is expected to grind along slowly.
The Desjardins Leading Index rose for a second consecutive month in May, to be up 1.1% after a 0.5% rise in April.
"If the DLI continues to rise this summer, the current cycle`s trough could be reached as of the fall, allowing a real recovery to materialize after that," said Hélène Bégin, a senior economist at Desjardins.
All components of the index, with the exception of consumption, rose in the month. The financial component became positive, the export component stabilized and the housing group posted a large increase. Despite these improvements, consumers continue to retrench amid the uncertain employment outlook.
Read the full article here.
Two separate economic indexes that gauge the conditions that create economic growth rose Tuesday, suggesting the economy was beginning to heal and growth would resume before the end of the year. However, without consumers on board, that growth is expected to grind along slowly.
The Desjardins Leading Index rose for a second consecutive month in May, to be up 1.1% after a 0.5% rise in April.
"If the DLI continues to rise this summer, the current cycle`s trough could be reached as of the fall, allowing a real recovery to materialize after that," said Hélène Bégin, a senior economist at Desjardins.
All components of the index, with the exception of consumption, rose in the month. The financial component became positive, the export component stabilized and the housing group posted a large increase. Despite these improvements, consumers continue to retrench amid the uncertain employment outlook.
Read the full article here.