Forgot your account information?  |  Create a CME account

Corporate profits may take second-half hit

Published by Steve Coleman on August 16, 2011

After six months of growth, the Conference Board of Canada says corporate profits may take a hit in the second half of 2011.

After two-straight months of no growth, the Conference Board says the numbers took a slight dip in July.
Besides the 0.1 per cent decrease for July, 18 of 49 business sectors recorded lower numbers in their own indices.

"The dismal economic recovery south of the border, as well as supply-chain disruptions linked to the Japanese earthquake and the dampening effects of rising inflation on consumer spending have all contributed to the deteriorating profitability outlook," said economist Lin Ai.

Lower exports to the U.S. as well as weather-related problems in the Alberta oil industry and Ontario's mining sector are partly to blame for the drop. Wet spring weather in the Prairies also meant more fields were left fallow during the planting season.

Found in: news

National Office

Alberta British Columbia
Manitoba New Brunswick
Newfoundland & Labrador Nova Scotia
Ontario Québec
Prince Edward Island Saskatchewan