Free Essays,College Free Essays,Free College Essays at Anti Essays

OTTAWA–Canada's economy shrank by 0.1 per cent in the first three months of this year – the first quarterly decline in real gross domestic product in almost five years, since the second quarter of 2003.
Statistics Canada said Friday the economy stalled "due to widespread cutbacks in manufacturing, most notably in motor vehicles."
The Canadian dollar skidded by about a penny immediately after the news, trading later in the morning at 100.56 cents US, down 0.54 cent from Thursday's close.
The economy, which had begun to lose momentum in the second half of 2007 as exports slowed, suffered from the factory slowdown during the January-March period, while winter weather disruptions added to the quarter's woes.
Statistics Canada said economic output contracted by 0.2 per cent during March.
Private-sector economists had expected first-quarter growth of 0.1 to 0.4 per cent, slowing from 0.8 per cent in the final three months of 2007.
"With goods piling up, the order went out to stop the production lines, and the resulting dive in manufacturing output sent the Canadian economy flirting with recession as the first quarter came to an end," commented CIBC World Markets economist Avery Shenfeld.
"With the quarter ending with successive drops in output for both February and March, the lack of momentum points to risks that the second quarter won't be a whole lot better."
Statistics Canada also delivered unnerving data on the inflation front, as surging petroleum prices drove indexes for manufactured goods and raw materials prices to record levels.
Prices charged by manufacturers rose 1.4 per cent during April, following a 1.8 per cent increase in March, almost entirely driven by oil and coal costs.
The agency's raw materials price index swelled 5.7 per cent in April after a 6.7 per cent rise in March – though excluding fuels it would have fallen 1.2 per cent.
Compared with April 2007, raw materials cost...