"Grim news just arrived from north of the border that is telling us something gloomy about our economic health.
New data show Canada’s economy unexpectedly went into reverse gear in the second quarter of the year, declining 0.1%. That’s an annualized drop of 0.4%, down from growth of 3.6% in the first quarter.
It matters because Canada is our principal trading partner. Some politicians hoped that international trade would help the U.S. gets its economic mojo back.
But when we look inside the Canadian data that’s just where the weakness is. The big driver in Canada’s weakness was a huge drop in exports, down 2.1%. At least part of the drop can be explained by a fall in energy sales due to wildfires; and lack of components caused by the earthquake in Japan.
What it also points to is a slowing U.S. economy..."
at http://blogs.wsj.com/economics/2011/08/31/what-does-canadas-shrinking-gdp-say-about-u-s/?mod=WSJBlog
New data show Canada’s economy unexpectedly went into reverse gear in the second quarter of the year, declining 0.1%. That’s an annualized drop of 0.4%, down from growth of 3.6% in the first quarter.
It matters because Canada is our principal trading partner. Some politicians hoped that international trade would help the U.S. gets its economic mojo back.
But when we look inside the Canadian data that’s just where the weakness is. The big driver in Canada’s weakness was a huge drop in exports, down 2.1%. At least part of the drop can be explained by a fall in energy sales due to wildfires; and lack of components caused by the earthquake in Japan.
What it also points to is a slowing U.S. economy..."
at http://blogs.wsj.com/economics/2011/08/31/what-does-canadas-shrinking-gdp-say-about-u-s/?mod=WSJBlog
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