Canada's economic growth unchanged in July, August likely to expand 0.2%
SPY•Canada's economy was unchanged in July, while an advanced estimate showed likely growth of 0.2% in August. The Bank of Canada forecast annualized third-quarter growth of 1.5%.
1. July activity flat
Canada's economic growth was flat in July after three straight months of positive growth. Manufacturing fell 0.9%, including a 6.2% decline at petroleum refineries, while mining, quarrying and oil and gas extraction decreased 0.5%. Utilities grew 1.7% and construction rose 1.3%.
2. August estimate
Statistics Canada's advanced estimate showed the economy was likely to grow 0.2% in August, led primarily by higher output in mining and quarrying and retail trade. The Bank of Canada forecast annualized growth of 1.5% in the third quarter.
3. Rate expectations
Money markets were pricing in a 25-basis-point rate hike in December, while most economists had called for no change in interest rates through the year.
