Indicators are OK

The Leading Indicators report for August 2008, published by Stats Canada yesterday, clearly suggests that the Canadian economy is progressing well. It is not performing exceptionally, nor is it as bad as some might have anticipated.

The most interesting statement made was:

Household demand has remained the most consistent source of growth in recent months. Sales of furniture and appliances grew steadily, helped by a steady housing market. Housing starts rebounded in August. Meanwhile, personal services have become the main prop to growth in services employment. Sales of other durable goods were an exception to the strength in household spending, reflecting slower auto sales over the summer in response to record gasoline prices.

The housing index dropped, which may mean more reasonable housing prices or a slowing of the price increases we have seen, which is also good.

Speaking of House Prices

The Citizen talks about how the Municipal Property Assessment Corporation will send out new price valuations for homes across Ontario. Remember, these valuations have been frozen for the past two years, so these new numbers could be pretty darn crazy (given the average 20% price increase since 2005 in Ontario).

“Residential property values have increased by an average of approximately 20 per cent across Ontario since 2005, when the last assessment update was done. Because of the four-year phase-in, property taxpayers will see an average assessment increase of five per cent next year,” Carl Isenburg, president and chief administrative officer of the Municipal Property Assessment Corporation (MPAC)…

I look forward to seeing this envelope in the mail.

Quick Run Around the Blogs

Some excellent articles this week from other bloggers worth having a look at:

• Michael James writes about the Current Financial Mess and gives a very philosophical view that we are still living good lives, we just need to figure that one out.
• The Canadian Capitalist writes about the implications of the Fall of AIG, a little depressing, but good research as well.