October brought a blend of developments in Canada’s economic landscape, with modest GDP growth, improved unemployment rates, and income inequality reaching new highs. The Bank of Canada’s rate cuts aim to keep inflation on target, while job gains and a stable manufacturing sector reflect continued resilience amidst global shifts.
Canada economy updates
- The Canadian economy is expected to grow at just 1% in the third quarter, below the Bank of Canada’s forecast, as GDP was flat in August due to drops in manufacturing and utilities, although a 0.3% rebound is anticipated in September.
- The Bank of Canada lowered its policy rate by 50 basis points to 3.75% on October 23, marking its fourth consecutive cut as inflation aligns with the 2% target.
- Canada’s unemployment rate dropped to 6.5% in September as the economy added 47,000 jobs. The job growth was driven by youth and women aged 25 to 54, with full-time positions seeing their largest increase since May 2022.
- Income inequality in Canada has reached its highest level since 1999, with the wealthiest 20% seeing the fastest growth in net worth. The gap in disposable income between the top 40% and bottom 40% of households is now 47 percentage points.
- Canadian manufacturing sales dropped to their lowest level since January 2022, falling 1.3% to $69.4 billion in August. The decline was driven by significant decreases in the primary metal and petroleum subsectors, although sales of aerospace products and wood products saw gains.
Canada stock market updates
October brought positive momentum to the Canadian markets! The S&P/TSX Composite Index rose 0.51% to CAD$ 24,156.87, while the S&P/TSX Venture Composite Index climbed 2.44% to CAD$ 601.43. It’s a month of steady growth and optimism!
- Perseus Group, a part of Constellation Software Inc., has bought an exclusive global license from Honeywell for its OptiVision system, which helps manage orders and production in the pulp and paper industry. This deal strengthens Perseus’ position in the market, adding to its existing companies like MAJIQ and Quality Engineered Systems.
- TFI International has received approval from the Toronto Stock Exchange to renew its Normal Course Issuer Bid (NCIB), allowing the company to buy back up to 7.9 million of its common shares. This bid will run for a year, from November 2, 2024, to November 1, 2025, and covers 10% of its public float as of October 21, 2024.
- Stantec Inc., a global leader in sustainable design and engineering, has enhanced its Canadian Infrastructure team by hiring Jim Weir as the regional growth leader and Stan McGillis as the infrastructure sector leader for Program and Construction Management. Both leaders joined Stantec from Morrison Hershfield and will help grow Stantec’s Infrastructure business in Canada.
- AtkinsRealis, a global engineering services company, has been chosen by the Los Angeles County Metropolitan Transportation Authority (Metro) to manage the program for acquiring new HR5000 heavy rail vehicles. This procurement is part of Metro’s efforts to expand its services ahead of the 2028 Summer Olympics.
- Kinaxis Inc., a company that specializes in supply chain management, has partnered with Ono Pharmaceutical Co., Ltd. to use its Kinaxis Maestro™ platform. This platform will help Ono, a Japanese pharmaceutical company, improve its global supply chain operations as it gets ready to expand its sales in the U.S. and Europe.
Canada’s top gainer and top loser stocks for October
Summary
As Canada heads into the final months of the year, its markets reflect a balance of cautious optimism and underlying challenges. Market performance and economic shifts indicate a stable outlook, with corporate activity driving growth and positioning Canada for steady progress.
Disclaimer: The content is for informational purposes only and does not constitute financial advice. It is important to conduct your own research or consult with a financial or investment advisor. All logos or brands are referenced for identification purposes only and do not constitute an endorsement of any kind. This information is accurate as of the date of publication and may not reflect recent changes. Access our comprehensive legal disclaimers at musaffa.com/disclaimer.
