Statistics Canada says economy grew 0.2% in Jul led by production sector

Strength in a production zone helped a Canadian economy grow some-more than approaching in Jul and boost expectations a Bank of Canada will lift a pivotal seductiveness rate subsequent month.

Statistics Canada pronounced Friday genuine sum domestic product grew by 0.2 per cent in July, an boost that followed radically no change in June.

Economists had approaching an boost of 0.1 per cent for July, according to Thomson Reuters Eikon.

Stephen Brown, comparison Canada economist during Capital Economics, pronounced a altogether economy is on lane for annualized expansion of around dual per cent in a second quarter.

“That would be stronger than a 1.5 per cent approaching by a Bank of Canada in a Jul financial process news and is another reason to design a bank to lift seductiveness rates subsequent month,” Brown wrote in a report.

Statistics Canada numbers uncover that after remaining prosaic in June, Canada’s economy grew 0.2% in Jul 2018. (Canadian Press)

Growing cost pressures

The stronger-than-expected GDP figure follows signs of flourishing cost pressures that have also lifted expectations of aloft seductiveness rates. The annual acceleration rate was 2.8 per cent in August, down from 3.0 per cent in July, though still during a tip finish of a Bank of Canada’s aim operation of one to 3 per cent.

The executive bank kept a pivotal seductiveness rate aim on reason during a rate proclamation progressing this month, though many economists design a executive bank to lift a rate during a proclamation on Oct. 24.

The Bank of Canada’s trend-setting seductiveness rate sits during 1.5 per cent after 4 increases given a center of final year.

The ducks are in a quarrel for an Oct rate hike, exclusive a startle on the NAFTA front.– Doug Porter, Bank of Montreal arch economist

“On balance, a Canadian economy looks to have had a diminutive bit some-more underlying movement than approaching by a summer, and a ding from a Syncrude outage was not as low as feared,” Bank of Montreal arch economist Doug Porter said.

“As we opined in a arise of final week’s plain core CPI (2.1 per cent on average), a ducks are in a quarrel for an Oct rate hike, exclusive a startle on a NAFTA front.”

Economist Derek Holt with Scotiabank said he also expects a rate hike, referencing remarks done Thursday by Bank of Canada head Stephen Poloz.

“I consider this reinforces Governor Poloz’s generally upbeat tinge final dusk and keeps us on lane for an Oct hike,” pronounced Holt. 

TD senior economist Brian DePratto described a GDP numbers as, “not too shabby.”

“Economic expansion might be set to assuage after a second quarter’s considerable performance, though we still demeanour set for another above-trend quarter. “

Trade talks could harm Canada

The Bank of Canada has pronounced it is closely examination a NAFTA talks and other trade process developments, that could harm a Canadian economy.

Bank administrator Stephen Poloz has pronounced doubt over NAFTA has resulted in reduction business investment in Canada than there differently should be.

A welder fabricates a steel structure during an iron works trickery in Ottawa Mar 5. Manufacturing sales increasing 0.9 per cent in Jul to $58.6 billion, increasing by a travel apparatus and chemical industries, Statistics Canada says. The boost followed radically no change in a country’s GDP in June. (Sean Kilpatrick/Canadian Press CANADIAN PRESS)

In a news Friday, Statistics Canada pronounced goods-producing industries grew 0.3 per cent, while services-producing industries increasing 0.2 per cent.

The group pronounced 12 of 20 sectors gained belligerent as a production zone grew 1.2 per cent in a month, a strongest display given Nov 2017.

Wholesale trade grew 1.4 per cent, while travel and warehousing services grew 0.9 per cent.

Meanwhile, a construction zone fell for a third time in 4 months as it changed down 0.6 per cent in a month.

With files from CBC News.

Article source: https://www.cbc.ca/news/business/statistics-canada-gdp-july-economy-grew-1.4842432?cmp=rss