Manufacturers say recession will last until ’02 (November 01, 2001)
November 1, 2001
MONTREAL, Que. - Lobbyists for the Canadian manufacturing sector say it will be gripped by recession until the end of 2002 in a best case scenario.Jayson Myers, chief economist with the Canadian Manuf...
MONTREAL, Que. – Lobbyists for the Canadian manufacturing sector say it will be gripped by recession until the end of 2002 in a best case scenario.
Jayson Myers, chief economist with the Canadian Manufacturers and Exporters, says the sector faces an erosion of confidence and spending in response to the devastating terrorist attacks on the U.S.
“It’s going to take a long time before the shock of that wears off, it’s going to take a long time before consumers gain back the confidence to continue spending,” he says. “And it’s going to take a very long time before investors are able to take on some of the risks they were able to take on before.”
Canadian manufacturers and exporters were already in a downbeat mood about the coming year before Sept. 11.
The manufacturing sector’s output shrunk by 0.3 per cent in the second quarter after falling 1.5 per cent in the first quarter – officially marking the beginning of a recession in the backbone of Canada’s export-driven economy.
“We thought conditions had kind of bottomed out and we were just beginning to see some indications that there would be a slow but gradual recovery,” adds Myers.
“Now, all bets are off.”
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