Our submission in August was based on more optimistic forecasts of recovery.
In his speech to the Windsor–Essex Chamber of Commerce, Bank of Canada Governor Mark Carney indicated that even though our recovery was far stronger than that of our G-7 peers, it was due largely to short-term recovery in housing and consumer spending and to the federal government's two-year stimulus program.
Consumer spending and government spending are not expected to provide the same degree of stimulus to the economy as before. The Conference Board of Canada recently reported that the consumer confidence index fell for the fourth straight month. Currently it is at 18.5 points below where it stood in January, when the recovery was stronger.