Canadian employment was weaker than expected in October, shedding 1,800 jobs after very strong growth in the prior two months. The unemployment rate remained unchanged at 5.5 percent, however, just a tick above May’s record low and beating expectations calling for a marginal uptick. The modest monthly drop was driven by declines of 23,100 jobs in manufacturing and 21,300 in construction, partly offset by a rise of 20,000 in public administration jobs and 17,800 jobs in finance, insurance, real estate & leasing.
Housing starts were weaker than expected in October. At a seasonally adjusted annualized rate of 201,973, the weakest reading since May fell short of the consensus forecast and was down 8.6 percent from September’s revised 221,135 outturn.
This weaker than expected data has put the Bank of Canada in the position of definitely not hiking rates and even in fact of having a good reason to cut rates. The Canadian economy is no longer impervious to the rest of the world and is finally impacted by U.S.- China relations.