Investment in non-residential building construction totaled $10.3 billion in the first quarter, down 0.7% from the previous quarter and 5.7% below the first quarter of 2009. Lower investments in commercial and industrial building construction explained both the first quarter decline and the downward trend that began in early 2009. read more
--------------------------------------------------------------------------------
The Bank of Canada scrapped on Tuesday its conditional commitment on interest rates, setting the stage for a June hike if it so chooses. The decision is based on a new inflation forecast that envisages consumer price increases hovering above the key 2% level over the next 12 months. In its previous forecast, the central bank didn't expect inflation to hit 2% until the third quarter of 2011 at the earliest. The central bank sets its key policy rate to achieve and maintain 2% inflation. read more
--------------------------------------------------------------------------------
The Canadian Construction Association has posted a "cautionary note" to contractors across the country, saying they may be on the hook paying for infrastructure projects uncompleted by the federally imposed deadline of March 31, 2011. The warning comes as new data from the Parliamentary Budget Officer show a huge amount of stimulus work is set to come on stream over the next few months - raising questions about whether a lot of work will be left unfinished and unfunded when the federal money stops flowing. read more
--------------------------------------------------------------------------------
The federal Liberals are calling on the government to be willing to extend the March 2011 deadline by when recipients of stimulus funding have to spend the money. Ottawa needs to show some flexibility when it comes to timing or risk saddling municipal taxpayers with shoddy projects and higher tax bills, said infrastructure critic Gerard Kennedy. read more
--------------------------------------------------------------------------------
Canada's budget watchdog says employment insurance premiums will have to rise by 35 per cent if the fund is expected to return to nearly balancing in four years. That means that by 2014 a typical worker would have to pay $223 more a year and an employer would have to contribute $312 more, for a total per worker of $535 annually, a 35 per cent increase. read more