Canada's economy on upswing: machinery sales, exports climb
- November 28, 2014
The Canadian economy is in good stance: CNC machinery sales have increased over 2013 orders and Canada's economy has grown faster than economists forecast according to recent figures from the Canadian Machine Tool Distributors' Association (CMTDA) and Statistics Canada.
"An increasingly strong US economy will benefit our exporters, also helped by the weaker loonie, which has made our products more competitive in the USA," said Frank Hayder, CMTDA president, who spoke at the organization's annual general meeting on November 26, held at Rattlesnake Golf and Country Club in Milton, ON. He noted that "oil sands will grow despite price hits...the auto sector will grow 8 per cent in 2014 and 3 per cent in 2015...good growth is also seen in the aircraft, chemical, plastic and industrial machinery sectors."
Canada's economy continues to grow, with gross domestic product rising 2.8 per cent from July to September, according to Statistics Canada. Exports grew at a 6.9 per cent annalized pace in the third quarter, led by crude, metals and chemicals, while imports increased 4.0 per cent. As well, business gross fixecd capital formation growth increased to 5.9 per cent from 3.2 per cent.
The economic growth exceeded the Bank of Canada's October estimate for third quarter growth of 2.3 per cent. While the figures are positive, Canada's economy is still not as strong as the US, where econmic growth hit 3.9 per cent in the third quarter, up from 3.5 per cent in the second quarter.
However, despite slower growth in Canada, stronger growth in the US will benefit Canadian manufacturers, noted CMTDA president Frank Haydar. For the most part, machine tool sales in Canada saw double digit increases in orders over 2013, with only a descrease in orders of "metal cutting non-CNC machine" orders.