That may mean that regional labour markets will adjust more quickly to the decline in commodity prices. Indeed, we are already seeing shifts in migration patterns. Net interprovincial migration to Alberta reversed in the fourth quarter of 2015. At the same time, over the past two quarters, Ontario registered the largest inflow of interprovincial migrants since 2002.
Consumer spending has been relatively stable so far this year, and the decline in housing activity appears to have moderated. Businesses have continued to cut capital spending and liquidate inventories, but the likely slowdown in the pace of inventory liquidation in coming quarters represents another factor that may support a turnaround in activity.