Don’t be surprised to see Canadian GDP growth near 3% annualized in Q2 - NBF
|Kyle Dahms, analysts at NBF Economics and Strategy explained that while Canadian retail sales wilted in June, a moderation was always in the cards after the prior month’s sales surge.
Key Quotes:
"Weak gasoline station receipts partly reflected lower pump prices, while sales of automobiles/parts recoiled from the largest increase in 7 months. Excluding both categories, retail spending rose a solid 0.3% in June after a 1.1% jump in the previous month. That said, discretionary sales, which excludes gasoline, groceries and health products, posted a 0.3% decline.
The soft retail numbers coupled with earlier-reported weakness in wholesaling offset gains reported by factories in the month, suggesting GDP may have been no better than flat in June. But a soft June won’t ruin the quarterly picture with gains of over 3.5% annualized for retail volumes pointing to a solid contribution from consumption in Q2."
"With such rebounding consumption, don’t be surprised to see Canadian GDP growth near 3% annualized in Q2."
.
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.