Stephen Poloz’s favourite economic indicator, according to Bank of America Merrill Lynch, consists of a count of the number of businesses operating in Canada. There are separate figures for manufacturing and non-manufacturing enterprises.
Why is it important?
A rapidly growing total indicates that entrepreneurs are seeing opportunities about the future.
How can it help you invest?
Poloz is cheery these days because the number of businesses in Canada continues to increase. He would be happier still if manufacturers showed some of the same growth trajectory as their non-manufacturing counterparts. So long as the non-energy part of the economy remains slow, the Bank of Canada is unlikely to hike interest rates.
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