Put your conservative spin on this Steve

Canada's economy just shrank, but corporate profits hit a record 27-year high

We've got good news and we've got bad news.

First, the good news: Corporate Canada's profits have hit a 27-year high, according to a new report by CIBC World Markets. Bay Street has never been happier, right?

Well, there's just one little catch: new Statistics Canada data shows the Canadian economy shrank in January. All those layoffs and store closures you've been hearing about lately? "Ugly" retail sales?

That stuff.

StatsCan reported Canada's GDP fell 0.1% in January (that's the total value of all the goods and services within a country -- often looked to as a sign of economic health). By contrast, CIBC reported that corporate profit margins hit a record 27-year high in the fourth quarter of 2014.

"Profitability remains high even though the real economy is not doing well and wages are stagnant," said economist Andrew Jackson, the Broadbent Institute's senior policy advisor.

So, it doesn't seem like those corporate profits are trickling down to workers or creating well-paying, stable jobs (a recent study showed Canada's job quality at a 25-year low).

Here's what all of this looks like in six charts:

1. Corporate Canada's profits are through the roof

Corporate Canada can thank "soft" labour costs (a shrinking labour force and low Canadian dollar) for this boost in profitability. Profit margins are currently at 8.2%, according to a CIBC analysis of StatsCan data. (By the way: Corporate Canada leads the way in global cash hoarding.)

READ MORE: http://www.pressprogress.ca/en/post/canadas-economy-just-shrank-corporate-profits-hit-record-27-year-high