Canadian economic growth rebounded in April, but early indications suggested it failed to maintain the momentum into May.
Statistics Canada said Friday real gross domestic product grew 0.3 per cent in April — matching its initial estimate for the month — after remaining essentially unchanged a month earlier.
However, the agency’s early reading for May suggested the pace of growth did not continue and slowed to 0.1 per cent for the month.
BMO chief economist Doug Porter said growth on balance was holding up a touch better than widely expected in 2024, but remained generally lacklustre.
“For the Bank of Canada, this doesn’t change much, as growth is still a bit below potential, which likely means some further backup in the unemployment rate and some further moderation in underlying inflation,” Porter wrote in a report.
“As long as the latter holds true, more rate cuts are coming, eventually. We continue to look for the next move in September.”
The Bank of Canada cut its key interest rate target earlier this month for the first time since the early days of the pandemic and while it is expected to cut its key interest rate again, the timing is uncertain.
Statistics Canada reported inflation ticked higher in May to 2.9 per cent compared with 2.7 per cent in April, a result that prompted changes on the financial markets to suggest that expectations of a rate cut in July were lower.
The growth in the economy in April came as 15 of 20 sectors grew for the month with both goods-producing and services sides of the economy showing growth.
Services-producing industries grew 0.3 per cent with the wholesale trade industry up two per cent in April. Retail trade also gained 0.5 per cent for the month.
The arts, entertainment and recreation industry posted an increase of 0.9 per cent, while accommodation and food services gained 1.2 per cent. The finance and insurance industry added 0.4 per cent.
Meanwhile, goods-producing industries posted growth of 0.3 per cent as mining, quarrying and oil and gas extraction rose 1.8 per cent.
The manufacturing sector grew by 0.4 per cent in April, while the construction industry fell 0.4 per cent.
This report by The Canadian Press was first published June 28, 2024.
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.
