Sunday, August 30th12.1°C
27214
24949

Loonie slides amid falling wholesale sales, disappointing U.S. housing data

TORONTO - The Canadian dollar closed sharply lower Wednesday amid a drop in wholesale sales and another indication of how severe winter weather is impacting the U.S. economy.

The loonie moved down 1.08 cents to 90.24 cents US as Statistics Canada said wholesale sales fell 1.4 per cent to $49.6 billion in December, the lowest level in six months.

"The data contribute to our view that Canadian real GDP contracted in December after four solid months, in part afflicted by very severe weather (ice storm in Central Canada)," said CIBC World Markets senior economist Avery Shenfeld.

The machinery, equipment and supplies subsector recorded the largest decline in dollar terms in December, with a drop of 3.5 per cent. This decline was attributed to a 13.2 per cent decrease in the computer and communications equipment and supplies industry.

The motor vehicle and parts subsector was off four per cent in December, more than offsetting a gain recorded in November.

Other data showed that U.S. housing starts fell by 16 per cent to an annualized rate of 880,000, worse than the expected reading of 899,000.

Reports released Tuesday underscored how large amounts of snow and freezing temperatures are having an impact on U.S. economic performance. The Empire State Manufacturing Index for February, a gauge of manufacturing activity in the U.S. Northeast, declined much more than expected while the U.S. National Association of Home Builders' buyer traffic index fell sharply as fewer prospective buyers felt like braving severe winter conditions in many parts of the U.S.

Commodities were mixed with March crude on the New York Mercantile Exchange ahead 88 cents to US$103.31 a barrel.

March copper was unchanged at US$3.29 a pound while April gold bullion faded $4 to US$1,320.40 an ounce.

The Canadian Press


Read more Business News

25990


Recent Trending




Today's Market
S&P TSX13865.07+98.40
S&P CDNX555.67+10.10
DJIA16643.01-11.76
Nasdaq4828.32+15.62
S&P 5001988.87+1.21
CDN Dollar0.75730.00
Gold1119.50-5.10
Oil45.26+2.70
Lumber237.20-9.70
Natural Gas2.719+0.055

 
Okanagan Companies
Pacific Safety0.165+0.005
Knighthawk0.010.00
QHR Technologies Inc1.29+0.05
Cantex0.04-0.01
Anavex Life Sciences1.34-0.05
Metalex Ventures0.055+0.000
Russel Metals21.41+0.43
Copper Mountain Mining0.64-0.01
Colorado Resources0.075-0.005
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.07+0.01
Decisive Dividend Corp2.75+0.14

 



26744

FEATURED Property
2283225207-3160 DeMontreuil court
2 bedrooms 2 baths
$172,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_



27313

26586


Member of BC Press Council


26780