16 March 2010

Loonie on the way up

The Canadian dollar is at a level it hasn’t hit since just before the giant meltdown of the economy in the middle of 2008.

And this is supposedly a good thing.

How exactly is unclear since the United States economy is still in the crapper and the Canadian economy is still full of government cash.

Productivity is up, for sure, and that’s good.  But…

While the recent pickup in productivity is welcome, “the question of sustainability still remains front as centre as firms continue to increase hours worked along with overall employment,” said Bank of Nova Scotia economists.

That’s really the warning that has to go with any Pollyanna projections:  we can’t be absolutely sure this is real.

Sales of manufactured products was down 11% in this province in January from December.  But the January 2010 numbers were about the same as the numbers in January 2009.  And that’s the opposite of what was happening nationally.

Oil production is still running about 17% below last year.  January production was about 8.7 million barrels compared to 10.5 million barrels in January 2009. That’s consistent with what you’ve been seeing reported in this corner since last fall.