Jennifer Zammit, A.C.C.I.

OTTAWA - The Canadian economy is bouncing back from the recession stronger than previously believed, despite ongoing worries about the impact of a strong dollar, the Bank of Canada said Thursday as it left interest rates untouched at the lowest level practicable.

In July, Bank of Canada governor Mark Carney appeared to go out on a limb in declaring the recession over - one of the first to do so - but now the central bank says even Carney underestimated the rebound.

"Stimulative monetary and fiscal policies, improved financial conditions, firmer commodity prices, and a rebound in business and consumer confidence are supporting domestic demand growth in Canada," the bank said in a statement.

"Combined with recent information on inventory adjustments and automotive production, this suggests that GDP (gross domestic product) growth in the second half of 2009 could be stronger than the bank projected in July."

The unexpected strength will not impact interest rates, however. The bank said it will keep its key policy rate at the 0.25 per cent until at least next July, as it promised to do in the spring.

The strength in the domestic economy was borne out by July trade numbers that suggest the return of spending by Canadian consumers, with an 8.3 per cent pop in imports.

The troubled export sector didn't fare badly either, gaining 3.3 per cent - 5.9 per cent in volume terms - on the back of auto production.

All this was done at a time when the Bank of Canada had been repeatedly warning about the impact on exports of a dollar persistently above 90 cents US, well beyond the bank's expectations of about 86 cents.

"To me it shows the bank is increasingly confident in the view... the recession is over and the economy is turning the corner," said Douglas Porter, chief economist with the BMO Capital Markets.

"I also think they are slowly but surely downgrading their concern about the currency. I think they just want to make sure it doesn't get way out of line and that's just part of what the verbal assault is aimed at, and they've been somewhat successful at that.""

The Bank of Canada gave no new estimates of growth for the second half of this year beyond the prediction it will be stronger than it initially forecast in July. At that time, the bank said the current third quarter would bounce back modestly by 1.3 per cent and the second quarter would rebound to three per cent growth.

Most economists now expect the third quarter will see growth between 2.5 and three per cent.

The bigger worry, said Scotiabank economist Derek Holt, is what happens next year. Ironically, he says, a bigger immediate bounce could result in weaker growth to come.

Holt said he believes many Canadian companies, with the exception of the auto sector, remain stuck with a significant backlog of unsold product and are not yet poised to ramp up production.

"That means... any recovery in Canadian production and export activity is likely to remain seriously muted and delayed in comparison to other countries," he said.

The bank's statement suggests Carney is still worried about the impact of the dollar on growth in the export sector - primarily autos, auto parts and forestry - but possibly not as much as in the past.

"In its conduct of monetary policy at low interest rates, the bank retains considerable flexibility, consistent with the framework outlined in (April)," the Thursday statement read. The April framework was a reference to increasing the money supply through quantitative easing.

But Porter noted caution came at the tail of the one-page statement and is more tamely phrased than in previous warnings.

He said there was almost zero chance that Carney would intervene in the currency trading, hoping his remarks will be sufficient to keep the dollar from rising too high, too fast. So far, he said, words appear to be working.

The dollar was up slightly in morning trading Thursday, gaining 0.07 of a cent to 92.58 cents US.

Let's face it - the real estate market is still in trouble. While we wait for things to improve, you may want to consider only those changes or upgrades that will guarantee to pay off later when it's time to sell.

So, which home improvement projects will give you the most bang for your buck? Here are our top 6:

Painting
Painting, inside or out, offers the most dramatic results for the least investment. If you plan to hire a professional, you should expect to pay anywhere from $3600 - $6000 for an average interior (2400 sq. ft.) and $5000 or more for the exterior.

Landscaping
A person will make a decision about your home in 8 seconds -- starting with it's curb appeal. Focus on the yard from the curb to the front door. If budget is an issue, spend most of it on perennials that come back year after year.

Windows
New windows not only add to curb appeal, they will save you money on your utility bill and make it more energy efficient. Although it can be a big investment, you can be sure to realize a 81% return. Remember: be sure to check with your accountant as you may be eligible for a tax credit.

Bathrooms
New fixtures can provide a solid return on your investment (68-78%). It is important to think long-term, however, and not get too trendy. A jacuzzi will never make or break a sale! If a new tub is not in the budget, resurfacing is a great option.

Kitchens
The most important thing to remember when remodeling your kitchen, is to stick to high-quality fixtures (stainless steel and granite). The biggest mistake that most homeowners make is to splurge on fancy appliances and fixtures in smaller homes. You can be sure that you will never get your money back.

Basements
If done right, a basement renovation will be the best investment you can make in order to increase the value of your home. It can also reap the greatest return -- anywhere from 50 to 100% depending on the quality of the materials. Before you consider any remodel, however, make sure you start with a dry basement and call in the pros if necessary.

Upgrades to avoid include: boldly colored finishes and materials or loud patterns -- they can be a put-off to many prospective buyers; tennis courts, basketball courts and swimming pools - they take up too much space and not everyone is a sports fan; wall-to-wall carpeting - wood floors in good condition are usually more desirable; home offices - especially if it eliminates a bedroom; concrete patios - those that are utilitarian can be unattractive, are guaranteed to crack and almost impossible to repair.

Bernadette Flaim, and her partner, Susan Corbo are Interior Redesign and Professional Organizing Specialists as well as Accredited Home Staging Professionals. Their Leonia, NJ-based business, Attention2Detail, provides quality interior redesign, professional organizing and real estate staging solutions for homes and businesses throughout the NY metropolitan area. They can skillfully refresh, refocus and redesign any space, residential or commercial. Whatever the need, the results will be simply amazing! Attention2Detail can dramatically enhance any environment - beautifully reflecting your taste and lifestyle, while meeting all of your design objectives!

Improve the appearance of your home
Nothing improves the appearance of an older home like new windows. Whether you're planning to sell your home, or are just sprucing up the place, you can be confident knowing that you're improving the appearance and value of your home, and the neighborhood.

In addition to improving your home's appearance, replacing your old windows can also reduce your heating and cooling costs. Much energy is lost by single-paned windows through the glass and through air leaks around loose-fitting components. Just run the back of your hand around a window on a cold and windy day - you can feel the cool air movement. Stop that air flow, and your home will be more comfortable and energy efficient.

The best replacement windows will include features such as double or triple-glazing with argon or krypton gas between the layers, heat reflective or Low-E coatings. These can substantially reduce your heating/cooling bill. Look for the Energy Star logo. In a Consumer Reports consumer rating for replacement windows, the two models rated as Best Buys were the Pella ProLine and the Anderson 200 Series Tilt Wash.

Vinyl replacement windows are the most popular choice. Vinyl is water-proof, color-fast, and never needs painting. Vinyl windows are also the least expensive. Alternatives include fiberglass, wood, vinyl-clad wood, and aluminum.

In addition to the cost savings, new windows are easier to maintain. Modern windows can be cleaned from inside the home - much safer and more convenient, especially for upstairs windows. And clean windows enhance the view of the outdoors and brighten the indoor space.

Be creative with replacement windows
New windows offer you the opportunity to be creative - to completely change the look of your house. Take a look at such possibilities as bay or bow windows, windows with side lights or palladian windows. Designer glazing with frosted areas, or other designs, can give your home a different look.

What to look for
There are many choices of replacement windows on the market. One issue with buying replacement windows is choosing the type that best fits the architecture of your home. If you are uncertain about the best window style, you may want to consult an architect or home designer to determine what type(s) of windows would be best for you. A professional could also be of assistance in helping you comply with local building codes. In addition, an expert can show you possibilities that may significantly improve the appeal and value of your home - possibilities that you may not have considered on your own. Many now have computer software that can show your house with different window treatments. Even if you plan to install the windows yourself, a few tips from a pro could save you some time and effort - maybe some money too.

Before making a final selection, you might want to visit a showroom to see them in a typical installation. There you can see just how they operate, and you can ask about maintenance, warranties, etc.

In your investigation, be sure to check out what the vendor is offering. Does he/she perform the installation himself, or hire a sub-contractor to do the work? Is the installation crew a local company? How long have they been installing windows? Who is responsible for warranty work? Does the local dealer cover factory defects as well as installation errors? It's in your best interest to identify and resolve any potential problems before they happen. Ask the dealer or installation crew for the names of some recent customers. Give them a call and ask how satisfied they are with the product and the installation.

Cleaning fine draperies can be easy and needs only to be done approximately once every three to six months. You invest a lot of money in the draperies in your home, and it only makes sense that a little time every so often to keep them in good shape. Most of the problems with draperies are caused by household dust settling on them. If you have children, food stains and spots can happen from messy little hands, but this is easily resolved as well.

Check the Labels on your draperies and clean according to the manufacturer's instructions.

If you can find them, try to use cleaners that are natural, colorless, odorless, non toxic and biodegradable. A water soluble is a good option also. By following these guidelines, you will avoid harmful or toxic chemicals and residues to pets and children.

For cleaning draperies, it may not always be possible to find natural products, however, if you can use natural cleaning products, you will be less likely to be left with a strong chemical smell and you won't have to block off your house for hours after you clean. Try to select cleaners that are perfume free when cleaning your draperies.

There are also some fine products out there that are not necessarily all natural, but when used according to the manufacturer's instructions, can be a fine way to clean your draperies.

Monthly maintenance of your draperies is a good idea. You should vacuum once every couple of weeks. More often if need be. Try to remove the dirt and dust on a regular basis and it won't accumulate into a problem. Make sure that your vacuum is in good working condition. Make sure your vacuum bag is not over-full, as this will make your problem worse instead of better.

Spot cleaning your draperies is also a good maintenance idea!

The blooms of summer are gone but fall can be an equally beautiful time for gardens. It's also the time to get things ready for winter. Master gardener Joe Lamp'l shares some tips on "putting your garden to bed."

Don't think of fall as just the end of the current growing season; it is the start of next year's garden as well. Along with the pleasure of enjoying the garden in the cooler fall temperatures there are important duties that should be addressed as we clean up and clear out. It is also the best time of year to get our gardens in shape for next spring and the growing season beyond. In fact, I look at this time of year as the start of my next year's gardening season.

Putting the garden to bed each fall is important for a number of reasons. Besides the obvious of cleaning and tidying up for aesthetic appeal, it's important for reasons that are not so obvious as well. A great spring garden next season begins with steps you should take now.

Cutting back and cleaning up
Many pests and diseases will persist in the soil and plant debris over winter, if they're given the opportunity. Removing spent annuals and vegetable plants from the garden, improves our chance of eliminating numerous future pest and diseases that would otherwise survive on that dead plant material. As you clean up your fall garden, include the following in your garden to-do list:

• Cut back perennials. These plants will come back next year because the roots survive, even though the growth above ground dies. Cutting off the dead and spent foliage a few inches above the ground in the fall will not harm the plant.
• Remove spent annuals and seasonal vegetables. Unlike perennials, annuals do not come back from season to season so there is no reason to leave these in the ground. Pull them up, roots and all, and add them to your compost pile.
• Remove weeds and leaf debris. These are common places for diseases and pests over winter. The less hospitable you can make the garden for winter hardy pests, the fewer problems you'll have come spring.
• Compost only the healthy material. As you remove debris from you fall cleanup projects, be sure to add only the pest-free and non-diseased plants to your compost. Destroy any diseased plant material or remove it from you garden. Pathogens and insect pests can winter-over and return next year in a compost pile that doesn't get hot enough.

Protect and prepare

• Take pictures and make notes. As the garden winds down for the season, there is still time to document what was growing there. This is especially helpful for perennials you will be cutting back for the season. As you add more plants, having a record of what was planted will allow you to avoid injuring dormant perennials. Notes are also a great way to document what worked and what didn't. While it is fresh in your mind this is a great time to gather you thoughts.
• Winterize containers. Not all plants or containers are able to withstand the winter outdoors. Containers can freeze and crack and non-hardy plants quickly die when roots are not underground. Either bring them indoors or at least to an area protected from winds and extreme temperatures. A garage or basement works well in many cases. For added protection, you might want to wrap the container in blankets or plastic wrap, several layers thick. You don't want to encourage new growth during this time, so don't add fertilizer and keep water to a minimum.
• Get a soil test. Fall is a great time to find out important information about your soil. Most reports include details such as pH level and nutrient analysis. Knowing this information in the fall is the perfect time to act on any deficiencies or amendments that may be necessary.
• Amend the soil with natural organic materials (homemade compost, manure, blood meal, bone meal, cottonseed meal, greensand, etc). Organic amendments are a great way to improve the long term health of your soil. By adding them in the fall, they have time to break down into a form that plants can use, just in time for spring. Organic material is not only optimal for adding nutrients in a safe way, it also improves the overall quality of soil as well. Structure, texture and tilth are all terms used to describe soil quality. Organic material is an easy way to achieve all the desirable qualities of healthy, productive soil.
• Add mulch. A fall layer of mulch provides a protective layer over plant's roots and protects evergreen foliage from soil borne diseases splashing back to the plant. In colder climates, mulch should be added after the ground freezes. This will help prevent frost heave and keep soil temperatures more even, while protecting roots.
• Protect trees and shrubs from pests. Fall is an excellent time to protect your trees and shrubs from certain potential pests next spring. Many damaging insects become active again in early spring, often times before we've had a chance to take action. Systemic insecticides applied to the soil as a drench are taken up by the roots and can be effective for many months. By applying a systemic agent in the fall, the active ingredient will be present in the plant or tree in spring when pest begin to feed again. It's an easy and more environmentally friendly way to control certain pests all year, but especially in early spring.

Plant for next season
Fall is also the very best time to plant trees, shrubs, perennials, winter annuals, bulbs and cool season vegetables. The soil is warm and the air is cool, so less energy is required of the plant overall. Some annuals such as pansies and snapdragons are ideal for fall planting. Color in the colder months is still possible with the right selections. However, making sure you add them to your garden before the soil gets too cold is important. The warmer soil will allow roots to become established and give the plants a better chance of looking their best.

Shrubs can also add color and structure to your garden in fall, just when much of the garden is going dormant. Shrubs with late season flowers such as Blue Mist Shrub (Caryopteris), Scotch Heather (Calluna vulgaris) and shrubs with colorful fruit like Nandina, Pyracantha and American Cranberry (Viburnum trilobum) extend interest throughout the season.

Evergreen azaleas are also a popular choice, especially the new repeat blooming varieties of Encore azaleas. They bloom in both spring and fall, and by planting now, next fall's display is even better as the plants have more time to become established in the ground. Although not winter hardy in all parts of the country, some gardeners treat them as annuals or over winter them indoors in zones 5 and above.

Ornamental grasses and perennials such as Chrysanthemum, Joe Pye Weed, Sedum, and Asters extend the colorful display. By planting them in the fall they have the best chance to grow bigger and better every year. So, while you are putting your garden to bed for the winter, envision the pleasure next spring will bring.