Economic and Investment Update – April 2023
Key Highlights
- The Consumer price index rose 5.2 per cent year over in February following a 5.9 per cent increase in January. Making it the largest deceleration in CPI since April 2020.
- The national unemployment rate continues to remain steady at 5.0 per cent in March.
- Real Gross Domestic Product (GDP) increased by 0.5 per cent in January.
- The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in March by Professional, Scientific & Technical Services, Accommodation & Food Services Industries, Other Services, and Retail Trade.
- Drone Delivery Canada awarded its first contract with the Government of Canada for a heavy lift Condor drone.
- Kontrol Technologies selected by a Fortune 100 customer for energy monitoring and facility optimization technology.
SELECT Economic Indicators
The Consumer Price Index rose 5.2 per cent year over in February following a 5.9 per cent increase in January. Making it the largest deceleration in CPI since April 2020.
The Consumer price index rose 5.2 per cent year over in February following a 5.9 per cent increase in January. Making it the largest deceleration in CPI since April 2020. While inflation has slowed, prices for certain items remain elevated. Food prices continue to increase with food purchased from grocery stores rising 10.6 per cent year over year in February marking the seventh consecutive month of double-digit increases. Food prices in grocery stores are continuing to face pressure due to high input costs, supply constraints, and unfavourable weather in growing regions.
Shelter prices continue to increase at a slower pace for the third consecutive month rising 6.1 per cent in February after an increase of 6.6 per cent in January. These movements indicate a general cooling of the real estate market.
Energy prices fell 0.6 per cent year over year in February following a 5.4 per cent increase in January. Prices for fuel oil and other fuels rose at a slower pace year over year in February (+24.3 per cent) compared with January (+36.5 per cent).
The unemployment rate continues to remain near record low.
In March employment rose by 35,000 with the unemployment rate continuing to hold steady at a near record low (5.0 per cent). National employment has continued on an upward trend since the Fall of 2022, over that period of time the number of employed people increased by 383,000.
Three industry sectors experienced increased employment growth in March. Transportation and warehousing rose by 41,000 (+4.2 per cent), business, building and other support services were up by 31,000 (+4.4 per cent) and finance insurance real estate, rental and leasing increased by 19,000 in March.
On a year-over-year basis, average hourly wages rose 5.3 per cent (+$1.68 per cent) to reach $33.12 in March. Wage growth was similar to February (+5.4 per cent), and there was little change between men and women (not seasonally adjusted).
Real Gross Domestic Product (GDP) increased by 0.5 per cent in January.
Real Gross Domestic Product (GDP), which measures the inflation-adjusted value of goods and services produced in the economy, rose by 0.5 per cent in January. Both goods-producing and service-producing industries were up in January as 17 out of 20 sectors posted increases.
Growth in real GDP for January was attributed to the wholesale trade, transportation and warehousing, and mining, quarrying and oil and gas extraction sectors which all rebounded from previous declines in 2022.
Manufacturing grew 0.5 per cent in January due to increases in durable goods manufacturing. Motor vehicle manufacturing posted the largest increase in the manufacturing sector up 20 per cent since December 2022.
The construction sector posted its largest gain since March 2022 with a 0.7 per cent increase since December 2022. More specifically increases in the sector were due to Engineering and other construction activities, residential building, and non-residential building growth.
LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES
The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in March by Professional, Scientific & Technical Services, Accommodation & Food Services Industries, Other Services, and Retail Trade.
ED’s Small Business and Entrepreneurship top five industries seeking consultations in March were:
- Professional, Scientific & Technical Services (45 per cent)
- Accommodation & Food Services and Other Services (13 per cent respectively)
- Retail Trade (9 per cent)
- Information and Cultural industries (7 per cent)
- Wholesale Trade (5 per cent)
Drone Delivery Canada awarded contract with the Government of Canada for heavy lift Condor drone
Vaughan-headquartered Drone Delivery Canada a leader in drone delivery technology was recently awarded their first contract for their heavy lift Condor drone from the Government of Canada. Drone Delivery Canada will be working with Transport Canada to operate and evaluate the proprietary drone delivery solution until December 2023.
The Condor heavy lift drone is designed to carry approximately 20 cubic feet of cargo, measuring 22 feet long, 5 feet wide and 7 feet tall and is capable of vertical take-off and landing. The drone will be assessed for its potential to support sectors such as mining, oil and gas, inspection, and emergency preparedness.
Kontrol Technologies was selected by a Fortune 100 customer for energy monitoring and facility optimization technology
Vaughan-headquartered Kontrol Technologies is a leader in smart building technology through IoT, Cloud and SaaS technology. Kontrol Technologies provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.
The company was recently selected by a Fortune 100 customer for the company’s energy monitoring and facility optimization technology. Kontrol Technologies will deploy technology in a 1.6 million square foot facility to optimize the operation and management of complex heating, ventilation and building automation systems.