Recession Spreads to Canada's Storefronts
"Canada's recession is spreading from the car factories to the coffee shops, reinforcing the case for Finance Minister Jim Flaherty's $40-billion stimulus program and adding to the risk that he may have to do more.
The baristas, shopkeepers, financial planners, technicians and consultants that make up Canada's services industries are starting to feel the same malaise that has gripped factories and exporters for the better part of a year, new government figures show.
Output by the services sector — which accounts for 70 per cent of Canada's $1.2-trillion gross domestic product — shrank for a second consecutive month in November, exacerbating the continuing slump in manufacturing and speeding the economy's fall into recession.......................
Taken together, Friday's data, reflecting some of the worst turmoil ever experienced in global financial markets, serve as a prelude for a recession that the Bank of Canada, the federal government and economists say is just getting started.
"There is no silver lining, which is something we are not used to seeing," said Sébastien Lavoie, an analyst at Laurentian Bank in Montreal and a former economist at the Bank of Canada. "It was not a blip. It's as bad as it looked. It will look the same in this quarter."