said the flow of consumer goods across its network is slowing down to the point that executives now believe North America is in a “mild recession,” even though most forecasts predict Canada will avoid that outcome.Sign up to receive daily headline news from the Calgary Herald, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
“Our current volumes reflect that we are in a mild recession,” chief executive Tracy Robinson told analysts on a conference call. “We’re uncertain about how deep, or how long it will go on. But what we’re modelling is negative North American industrial production for the full year.” A year ago, with inflation at some of the highest levels in four decades, many economists thought a recession was all but certain, given how aggressively central banks were raising interest rates to get price increases under control. But with unemployment rates in Canada and the United States near record lows, it was starting to look like economic growth would hold up. The Bank of Canada earlier this month raised its forecast for growth this year to 1.
CN Rail volumes have dropped six per cent so far in April, “reflecting weakness in the economy,” said chief financial officer Ghislain Houle. CN’s intermodal freight business, which focuses on shipping containers that often carry consumer products for retailers, fell to 512,000 carloads in the first quarter — down 13 per cent year over year.
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