Are good times about to end?

Experts warn cost of oil, 85-cent loonie threaten Canada’s sizzling economy

You might think Canadians had rarely had it so good. Our dollar is at a 13- year high, Canada’s benchmark stock index just hit its best level in five years and is within sight of breaking its record, and the housing boom continues unabated. But economists caution that our recent prosperity is a doubleedged sword. Manufacturing jobs are in jeopardy, interest rates are heading marginally higher and housing construction is expected to slow, they say. And average consumers are going to be squeezed by higher energy prices.

“ It’s a mixed story, that’s what it is,” said University of Toronto economics professor Peter Dungan. The dollar surged yesterday to close at 85.57 cents ( U. S.), up 0.73 of a cent and the highest close since January 1992, passing a threshold many economists say will begin to threaten more manufacturing jobs as Canadian exports become increasingly expensive.

Meanwhile, Canada’s premier stock index, the S& P/ TSX composite, closed at 11,024.73, the highest since September 2000. Both were boosted by the price of oil, which in turn was driven up by fears that Tropical Storm Rita could hit the energy industry in the Gulf of Mexico this week in the midst of attempts to recover from the devastation of Hurricane Katrina. Indeed, crude oil futures soared more than $ 4, marking the biggest one- day jump on record. Benchmark light, sweet crude for October delivery rose