Weekly Digest – 04 October 2024

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Checking in on Canadian businesses: 5 key things we discovered this quarter.

The latest Canadian Survey on Business Conditions (CSBC) report highlights positive progress, with the Bank of Canada making strides in controlling inflation. Inflation has finally reached the Bank’s 2% target, signaling a key achievement in stabilizing the economy. Despite a slight slowdown in hiring, businesses remain optimistic, anticipating modest employment growth and a “soft landing” for the labour market over the next three months.

The report also shows that while inflationary pressures are easing, businesses are still cautious about the future. Companies continue to demonstrate resilience, adapting to changing market conditions, but they are keeping a close watch on global uncertainties and long-term economic trends.

Canada’s main stock index closes above 24,000 for the first time ever.

The S&P/TSX Composite Index, Canada’s stock market benchmark, reached a record high on Thursday, closing above 24,000 points for the first time. This rally reflects growing investor confidence, driven in part by China’s stimulus plans aimed at boosting its economy.

China’s economic measures led to a surge in demand for raw materials, positively impacting Canadian base metal providers. As a result, the Canadian stock market saw strong performances in sectors tied to metal production, signaling increased optimism about global growth prospects.

The CRA wants to know if it’s doing a good job and wants your feedback.

The Canada Revenue Agency (CRA) is asking Canadian taxpayers for feedback on how it can improve its services. To gather input, the CRA has launched public consultations open to individuals, non-professional representatives, and tax intermediaries.

By inviting a range of participants, the CRA hopes to collect insights that will help enhance its programs and services, ensuring they better meet the needs of all Canadians moving forward.

Canada’s business energy is slowing down after the pandemic.

Business dynamism, essential for a vibrant economy, reflects how often businesses enter, grow, and exit the market, influencing competitiveness, innovation, and productivity. In Canada, this dynamism has struggled to recover post-pandemic, with sluggish business formation rates indicating ongoing challenges in regaining pre-pandemic momentum.

Even before COVID-19, business dynamism in Canada was declining, and the pandemic worsened this trend, leading to fewer new businesses and more exits. The rise in bankruptcies further highlights the need for efforts to revitalize the business landscape and promote growth.

Why is self-storage booming worldwide?

Storage companies are taking advantage of vacant commercial spaces left by businesses that closed or downsized after the pandemic, transforming these empty buildings into new facilities. The demand for storage is rising as both consumers and businesses look for more affordable solutions due to increasing rents.

In Canada, 16 new storage facilities opened last year, adding one million square feet of space. According to StorTrack, rental costs for storage units have also increased by 12% from 2023, highlighting the growing demand and expansion in the storage market.

Weekly Digests