December Data Form Canada Showing A Bounce That Month

Manufacturing sales and housing starts increased in Canada

Skerdian Meta•Monday, February 15, 2021•1 min read

The economy is expanding despite tougher coronavirus restrictions

The new restrictions in Autumn have been softening the strong economic rebound that we saw in summer in Canada. Although, today’s data is showing some decent increase in manufacturing sales in December and housing starts in January. So, it seems like the new restrictions are not having too big of an impact on the economy, while USD/CAD continues to slide lower.

Canada December 2020 Manufacturing Sales Report

December manufacturing sales +0.9% vs +0.6% expected
Prior was -0.6%
Sales up in 9 of 21 industries
Inventories fell 0.6%
Inventory to sales ratio 1.60 vs 1.62 prior
Unfilled orders +0.3%
Total manufacturing sales decreased 11.4% to $610.6 billion in 2020
Full report

Wood products carried the bulk of the gain here on soaring lumber and OSB prices. There’s still a big hole to dig out and volutes are at the lowest since 2011 but all the talk of a commodity supercycle is helping the loonie to start the week.

Canadian January housing starts data

January housing starts 245.0K vs 235.7K expected
Prior was 228.3K (revised to 229.4K)
Single-detached homes +36.8% vs -6.1% prior
Multiple starts +23.9% vs -15% prior
Seasonally adjusted starts +22.7%
Full report

This is a hot number and the Canadian housing market is undoubtedly sizzling but you have to take any kind of construction numbers for Canada in January with a grain of salt. It’s cold out there and not much is happening. All that said, this is the second-strongest month on record.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.