Narrowing in the trade deficit probably temporary

The employment figures took a lot of the gloss off the news earlier in the week that monthly GDP growth accelerated back in August. It is clear that even if energy and autos production were enjoying a late summer recovery, conditions were a lot weaker in the rest of the economy and we have seen some further deterioration through the fall. We doubt that the Bank of Canada would want to respond just yet with a rate cut, but it won't sit on the sidelines for long if the unemployment rate starts to climb higher.