Two datapoints out this morning that might give us pause as the federal government prepares to release the hounds of spending.
First, the economics department at the T-D Bank says that " despite perceptions of tightening conditions, bank credit continues to flow at a strong pace to households and firms." The report, written by the bank's deputy chief economist Craig Alexander and economist Grant Bishop, concludes that "business credit expanded by 13.2% Y/Y in December fuelled by Canadian-denominated business loans and much expanded reliance on Bankers’ Acceptances."
Business lobbies such as the Canadian Manufacturers and Exporters and the Canadian Federation of Independent Business have been saying for weeks that credit for many of their members is drying up.
Second, the Conference Board of Canada today reports that consumer confidence is up this month. That's right -- up! It's not up much but the board's survey found that an increasing number of Canadians are feeling better about their financial situation and are considering purchasing big-ticket items.
