Canada: May’s Manufacturing shipments should support GDP growth - NBF
|Data released today showed that Manufacturing shipments rose 1.6% in May and the unadjusted capacity utilization rate in Canada’s manufacturing sector increased to 2.4 percentage points to 82%. Kyle Dahms, analysts at the National Bank of Canada
Key Quotes:
“Manufacturing sales in Canada came in slightly below consensus expectations in May. Truth be told, the headline number grew at a very decent clip in the month. A rebound in transportation equipment was always in the cards after temporary auto plant shutdowns in April.”
“It is important to note that volume sales and inventories were rising at a faster pace than their nominal counterparts. This will certainly help the growth outlook for May GDP.”
“Looking at quarterly data, following a 1.7% increase in the first quarter of the year, real shipments are on track to jump an annualized 7% in Q2 after two months of data, thanks to the excellent handoff from March and the strong May print. This is consistent with our view for Canada’s GDP growth accelerating in the second quarter of the year.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.