Early Canadian economic data for March looks dreadful although that is not unexpected, as Nathan Janzen from the Royal Bank of Canada notes.

Key quotes

“The Canadian Federation of Independent Business reported that business confidence fell to its lowest level on record in March, below the lows in the 2008/09 financial crisis.”

“Surge in employment insurance claims flagging historically unprecedented unemployment surge.”

“Risks appear to be tilted to the downside relative to the 3.0% GDP contraction we expect in Q1 – and that is ahead of what is almost certain to be a double-digit contraction in Q2.”

“There is still light at the end of the tunnel, but the near-term will be dark days for the economy.”