Independent Accountants' Investment Counsel Inc.

(source: Bloomberg, MSCI and ARG Inc. analysis)


What happened last week?

  • Friday provided a welcome uptick in North American equity indexes after jobs data was released.  Both the Canadian and American economies continued to generate jobs even after monetary policy moves that have been enacted on both sides of the border.  The jobs market demonstrated continued resiliency and provided encouragement on the “interest rate increase vs recession” debate.

  • “Employment rose by 104,000 jobs in December, and the unemployment rate declined by 0.1 percentage points to 5.0%, just above the record low of 4.9% reached in June and July” according to the Statistics Canada release on Friday.  Employment levels increased in six provinces and held steady in two territories. (Source)

  • Total nonfarm payrolls rose by 223,000 jobs and the unemployment rate edged down to 3.5% during December in the United States.  Job gains were achieved in leisure and hospitality, health care, construction, and social assistance sectors. (Source

  • The U.S. jobs growth in December was the lowest monthly number in 2022, and the average hourly earnings number is softening, showing that Federal Reserve action is working.  Both suggest that the Federal Reserve’s interest rate increases and tightening of capital markets are beginning to achieve the desired effects of slowing demand that drives economic growth. 

  • More interest rate increases are expected from the Federal Reserve, while the Bank of Canada has said that future increases require additional analysis.  Markets responded positively to the jobs data based on monetary policy effectiveness. (Source



What’s ahead for this week?

  • In Canada, November’s building permits, signifying strength or weakness in the construction sector and housing market will be announced.  Bank of Canada Governor, Tiff Macklem, will participate in a panel discussion on the risk of climate change.

  • In the U.S., Federal Reserve Chair, Jerome Powell, will speak at the Sveriges Riksbank International Symposium in Stockholm on Tuesday.  On Thursday, December and year-over-year consumer inflation data will be released.

  • Globally, the European Central Bank will release its latest economic bulletin.  Great Britain will report its Gross Domestic Product report for December, the fourth quarter and year-over-year.  Italian retail sales, French imports and exports, and German GDP will also be announced.  Both China and Japan will release CPI and Producer Price Index (PPI) data for December.

For more information contact: [email protected] | Tel (519) 291-2817 | 135 Main Street, East | PO Box 68 | Listowel, ON N4W 3H2


This report is produced by Independent Accountants' Investment Counsel Inc (“IAIC”) in conjunction with ARG Inc.  All graph and chart statistical data contained in this report has been supplied by ARG Inc. The views and opinions expressed in this report are based on market statistics.  No guarantee of outcome is implied, and opinions may change without notice.  Investors should not base any of their investment decisions solely on this report nor should any opinions expressed within this report be construed as a solicitation or offer to buy or sell any securities mentioned herein.  Although the information contained in this report has been obtained from sources that IAIC believes to be reliable, we do not guarantee its accuracy, and as such, the information may be incomplete or condensed. All opinions, estimates and other information included in this report constitute our judgment as of the date hereof and are subject to change without notice.

Please contact your IAIC representative if you have any questions regarding this report. 


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