Economic indicators

Each month, Statistics Canada releases several important Canadian economic indicators. In the United States, similar statistics are released by the U.S. Census Bureau and the Bureau of Labor Statistics. These include inflation, labour and employment statistics, gross domestic product (GDP) levels, housing starts, and consumer spending numbers.

These indicators are used by investors to gauge the health of the economy and to predict whether good times or trouble lie ahead. Therefore, they can have a powerful effect on the direction of the stock market when they are released.

Also, Canada and the United States are close trading partners, and the U.S. economy is the world's largest. As a result, good or bad economic news south of the border can have a profound impact on Canadian markets.

Paying close attention to economic indicators can assist you in your trading.