After a week of strong economic data on both sides of the border, traders are bracing for another heavy slate of economic news due next week.

In Canada, the big news will be the Bank of Canada rate decision on Tuesday. RBC is calling for no change in the overnight target rate, “especially in light of yesterday’s stronger-than-expected GDP numbers.”

CIBC World Markets agrees, noting, “In Canada, despite a surprisingly robust Q4 GDP report and record employment, it’s too premature to expect Bank of Canada re-tightening. Still, the recent firming in key data reports suggests a cautiously optimistic tone will colour the statement accompanying Tuesday’s non-move by the Bank.”

BMO Nesbitt Burns points out that if the Bank does stand pat it will be the first time in over a year that it hasn’t moved rates. “The more pressing issue now is when will the Bank of Canada start raising rates,” it says.”While policymakers will be in no rush, we look for the Bank to begin the tightening cycle in late Q3 or early Q4.”

On Wednesday, January building permits will be out. February’s help-wanted index is due on Thursday. On Friday, the other big day, February employment, housing starts and purchasing managers index are all on the schedule.

CIBC predicts that after a strong January in job creation, a few thousand jobs may disappear, “taking the jobless rate back up a notch.” BMO Nesbitt Burns concurs, noting that it is looking for a headline payroll drop of 15,000 in February, taking the jobless rate back up to 8.0%.

In the U.S., the February non-manufacturing ISM report is due out on Tuesday. January factory orders are slated for Wednesday, as is the Fed’s Beige Book.

Revised fourth-quarter productivity will be announced Thursday, along with initial jobless claims. BMO Nesbitt Burns says that productivity will likely show an upward restatement.

“In contrast to most cycles, when companies held on to workers even though output was falling, in this cycle, companies cut workers even though output largely remained on an even keel. This is another piece of the profits puzzle. The drive to restore profits growth underpinned the layoff trend, and the restructuring that led to the productivity surge.”

The February employment report is due on Friday there too. CIBC World Markets says, “In the US, all eyes will be turned to the payrolls for further signs that the late 2001 layoff bulge is abating as the economy shifts back into gear. Our forecast of a 10,000 decline is a bit to the weak side of consensus.”

BMO Nesbitt Burns says, “We expect more evidence of the emerging economic thaw to appear gradually in this week’s U.S. economic data. The highlight, of course, will be Friday’s payroll figures. It is likely that the numbers will be tepid since large companies are still cutting costs in order to boost profits in a highly competitive global environment. A small decline in the headline figures remains a good bet, but we agree with most observers that labour markets are moving back toward neutral at this point.”

While the data calendar is heavy, the earnings announcements slow down next week. Bank of Nova Scotia is due to report on Tuesday. Followed by Sleeman Brewing and Sobeys Inc. on Wednesday.

Empire Company is slated for Thursday, and Hudson’s Bay Co. should report on Friday.