Carney sees some signs of economic recovery

Bank of Canada governor Mark Carney speaks with the media following the release of the monetary policy report in Ottawa on April 23.(Sean Kilpatrick/Canadian Press)

Bank of Canada governor Mark Carney sees some positive economic signs starting to appear.

"We think that the first quarter would have been the biggest drop," Carney said in an interview with Evan Solomon to be broadcast on CBC News: Sunday and CBC News:Sunday Night.

"Second quarter is going to be tough. But we see, you know, the pace of decline slowing," he said, adding that the current outlook for employment is still difficult.

Carney said the central bank is starting to see signs of a rebound in consumer confidence, coupled with some positive moves in the housing market.

"And we continue to see adjustment in inventories," he added.

"Firms got caught with a lot of extra product that they need to sell and they seem to be adjusting to that quite quickly. It makes this half of the year bad. But once you’ve cleaned out the inventory stock then it means you start producing more.

"Last thing, some of this difficult restructuring, if handled well, can get us back on our feet much more quickly," he said.

Evan Solomon's full interview with Mark Carney will be broadcast on CBC News: Sunday and CBC News: Sunday Night.