Skip to main content

The Globe and Mail

Loonie ends lower as Canadian manufacturing shipments fall

Canadian dollars.

Jonathan Hayward/The Canadian Press

The Canadian dollar closed lower Friday amid data showing manufacturing shipments declined in December for the first time since August.

The loonie lost 0.05 of a cent to end at 91.05 cents (U.S.) as Statistics Canada reported that manufacturing shipments fell by 0.9 per cent. Economists had been looking for a gain.

The agency cited a decline in transportation equipment sales for the step back. But it also noted that manufacturing sales have risen in six of the past eight months and were 2.7 per cent higher than in December, 2012.

Story continues below advertisement

In the U.S., the latest reading on U.S. consumer confidence, the University of Michigan's index, was unchanged at 81.2. A slight drop had been expected.

Another report showed that harsh winter weather led to U.S. factory output falling by 0.8 per cent in January.

Overseas, China's consumer prices rose 2.5 per cent over a year earlier in January, unchanged from December's rate. The rise in politically sensitive food costs decelerated to 3.7 per cent from December's 4.1 per cent.

Traders found the inflation data encouraging because it leaves the Chinese government room to stimulate the world's second-biggest economy.

Other data showed that economic growth across the euro zone was stronger than expected at the end of 2013 as gross domestic product grew by 0.3 per cent in the fourth quarter from the previous quarter. That adds up to an annualized rate of about 1.2 per cent. Analysts had been looking for fourth-quarter growth of 0.2 per cent.

In the third quarter, growth was only 0.1 per cent across the euro zone, which came out of recession at the beginning of 2013.

Commodity prices were mixed amid the economic data as March crude on the New York Mercantile Exchange declined 5 cents to $100.30 a barrel.

Story continues below advertisement

March copper was up a cent at $3.26 a pound while April gold bullion gained $18.50 to $1,318.60 an ounce.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.