Canadian Economy Appears on Upswing

Canadian factory sales surprisingly surged in December, which capped off the best two-month performance in over five years and offered further evidence the economy has shifted into a higher gear.

The value of seasonally-adjusted factory sales climbed 2.3 percent to a record 53.46 billion Canadian dollars in December from November, according to Statistics Canada. The sales level in December beat the previous high, which was before the 2008/2009 financial crisis.

December’s result shattered market expectations for a 0.3 percent advance, according to economists at Royal Bank of Canada.

The previous month’s figures were also revised upward to show a 2.3 percent increase in sales. The November-December performance was the best back-to-back showing for factory sales since summer 2011.

The report is the latest in a string of economic indicators that suggest Canada’s economy is picking up. The country has recorded the best half-year employment gain in just over 14 years.

Source: Wall Street Journal