September 08, 2014 – The loonie dipped 0.06 of a cent to end at 91.90 cents (U.S.).
Remember this news from January this year as our Loonie was loosing ground against the U.S. Dollar…
The hospitality and tourist sectors, exporters and particularly manufacturers, which have been losing market share in the world, are among the major winners. So are the people who work in these industries. The Globe and Mail, Published Saturday, Jan. 11 2014
“On net, this could be seen as a good thing because it’s making Canadian goods and services more competitive,” said Michael Devereux, a professor at the University of British Columbia’s Vancouver School of Economics.
“It’s good for our margins, no question about it,”. “We have more money to invest. It’s all about making the business stronger and more sustainable, and the lower dollar does that.” President Peter Allen, Electrical Contacts Ltd. of Hanover, Ont.
“A dollar at 90 cents is going to be a lot more attractive for companies to come to Canada, keep investments here, or just to remain in business,” Plitron Manufacturing Inc. of Toronto, a maker of transformers, plans to give more employees raises and bonuses because the lower dollar is boosting profits on its exports.
And I was saying a weak dollar will make life more expensive for consumers. Well I’ll admit my mistake, It’s wasn’t just consumers that will suffer. Here is today’s news…
Employment in Canada’s private sector is at a standstill.
Statistics Canada reported that a total of 11,000 jobs were lost in August, leaving the unemployment rate unchanged at seven per cent. These figures were a far cry from economists’ expectations that 10,000 jobs were added last month.
The number of Canadian private-sector employees fell by 112,000 in August — the worst drop on record, even during the last recession.
“Supposedly, businesses were engaged in massive job cutting despite the recent surge in exports, an uptrend in housing starts, and impressive buying of discretionary items like plane tickets and vehicles,” said Avery Shenfeld, chief economist at CIBC World Markets, in a note.
BTW – picked up a Rigid Shop Vac this past weekend at Home Depot in Buffalo NY – $46.97 vs $69.00 here – a nice $22.00 Savings including tax.