In addition, the need for inventory adjustments, although not to a large extent, is heightening for some goods. Thus, industrial production is expected to follow a declining trend. In these circumstances, the increase in corporate profits is likely to be subdued, and recoveries in household income and consumption are projected to be sluggish. Overall, the economy will likely remain stagnant for some time.
David Dodge: Improving financial system efficiency – the need for action Remarks by Mr David Dodge, Governor of the Bank of Canada, to the Economic Club of Toronto, Toronto, Ontario, 11 December 2006.