That followed a flat reading in the previous month, missing expectations for a 0.2 per cent increase in a Bloomberg survey of economists, in part due to a federal workers’ strike. March growth was revised upward to 0.1 per cent.
The economy is now on track to expand at a 1.4 per cent annualized rate in the second quarter, if June output is flat. That’s faster than the 0.8 per cent pace expected by economists in a Bloomberg survey and the Bank of Canada’s forecast of 1 per cent.
The report shows Canada’s economy continuing to defy expectations of a coming slowdown and adds to a string of firm data that already prompted an interest-rate hike in June. While consumer price gains reached the weakest pace in two years in May, the Bank of Canada may need to raise rates again to squeeze out excess demand.
Governor Tiff Macklem and his Bank of Canada officials raised borrowing costs to 4.75 per cent earlier this month after a five-month pause, saying monetary policy wasn’t sufficiently restrictive to bring supply and demand into balance. Policymakers were also worried that inflation could remain stuck above the 2 per cent target given recent economic momentum.
April’s output data, while flat, backed up some of those concerns as rate-sensitive sectors expanded. The real estate sector grew for a sixth straight month, rising 0.5 per cent, the largest growth rate since December 2020 on higher home sales. Construction activity grew 0.4 per cent, accommodation and food services rose 0.6 per cent, and retail increased 0.2 per cent.
Mining, quarrying, and oil and gas extraction also grew, jumping 1.2 per cent, in the fourth straight month of expansion. Transportation and warehousing was up 0.4 per cent.
The public sector contracted 0.3 per cent in April, the first decline since January 2022. A strike by federal workers resulted in a 4.3 per cent contraction in federal public administration excluding defense.
Wholesale trade contracted 1.4 per cent, the third consecutive monthly decline, and manufacturing declined 0.6 per cent, the first time in four months.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
