MONTREAL, March 31 /CNW Telbec/ - E&B DATA has observed a surge of announcements in new capital investments in Ontario in February. More than 1 billion $ of new investments were announced in February 2010 as compared to 120 million $ in February 2009. This is 8 times the level of investment from last year, which was the most disappointing year of the decade. New capital investments announcements are an important indicator of economic activity, especially when the jury is still out as to if and when an economic pick-up is to be expected.
A number of the announced projects have precision manufacturing in common. Noteworthy is the fact that some if these investors have diversified markets and also include clients in the medical equipment industry, in energy and aerospace. Not all projects are limited to Southern Ontario with resource projects in the North completing February's announcements.
Why this surge now ?
It is also interesting to note that the upward trend in the value of the Canadian dollar since late 2009 has not negatively impacted these projects. However half of these investments will receive government financial assistance of some sort.
It is too soon to tell if this strong advancement in investment activity will continue and whether it will compensate for the other companies and industries still reeling from the economic downturn. However, it does suggest that a few industries could spearhead the beginning of a positive turn in the economy.
Created in 2000, E&B Data's Investment Observatory performs daily monitoring of publicly announced private capital investment projects in Canada. The team behind the Investment Observatory tracks announcements of capital investments in new facilities, in expansion and in modernization projects, using nearly 1,000 sources of information. All capital investments are validated with investors.
About E&B DATA:
E&B (Economic and Business) DATA is a North American leader in the supply of economic and business information, specializing in the industrial, emerging and energy sectors. Equipped with proprietary databases and information systems, E&B DATA operates the largest private capital investment monitoring activity in Canada.
SOURCE E&B DATA
For further information: For further information: Isabelle Poirier, Investment Strategist, (514) 276-1700 x 102; www.ebdata.com