Canada’s gross domestic product jumped in May at the fastest pace in four months as carmakers ramped up production.
Output rose 0.4 percent, following a 0.1 percent gain in April, Statistics Canada said today in Ottawa. The result matched the median forecast in a Bloomberg economist survey with 18 responses.
The fifth straight monthly gain in domestic output adds to signs the economy is making progress on what Bank of Canada Governor Stephen Poloz said will be a two-year recovery toward full output. The central bank on July 16 estimated annualized growth of 2.5 percent in the April-to-June period after expansion slowed to a 1.2 percent pace in the first quarter.
“It’s a pretty good report,” David Tulk, chief macro strategist at Toronto-Dominion Bank’s TD Securities unit in Toronto, said by phone from Toronto. “It was generally broad-based gains. The key to our outlook is seeing how the U.S. economy performs as we get into the second half.”
U.S. gross domestic product rose at a 4 percent annualized rate in the second quarter after shrinking 2.1 percent from January through March, Commerce Department figures showed yesterday.
Tulk said the report confirms economic growth is “tracking” the Bank of Canada’s second-quarter forecast.
Canada’s currency dropped 0.1 percent to C$1.0917 versus its U.S. counterpart at 9:17 a.m. in Toronto. The yield on government benchmark five-year bonds rose 2 basis points to 1.54 percent.
Canada’s gross domestic product jumped in May at the fastest pace in four months as carmakers ramped up production.
Output rose 0.4 percent, following a 0.1 percent gain in April, Statistics Canada said today in Ottawa. The result matched the median forecast in a Bloomberg economist survey with 18 responses.
The fifth straight monthly gain in domestic output adds to signs the economy is making progress on what Bank of Canada Governor Stephen Poloz said will be a two-year recovery toward full output. The central bank on July 16 estimated annualized growth of 2.5 percent in the April-to-June period after expansion slowed to a 1.2 percent pace in the first quarter.
“It’s a pretty good report,” David Tulk, chief macro strategist at Toronto-Dominion Bank’s TD Securities unit in Toronto, said by phone from Toronto. “It was generally broad-based gains. The key to our outlook is seeing how the U.S. economy performs as we get into the second half.”
U.S. gross domestic product rose at a 4 percent annualized rate in the second quarter after shrinking 2.1 percent from January through March, Commerce Department figures showed yesterday.
Tulk said the report confirms economic growth is “tracking” the Bank of Canada’s second-quarter forecast.
Canada’s currency dropped 0.1 percent to C$1.0917 versus its U.S. counterpart at 9:17 a.m. in Toronto. The yield on government benchmark five-year bonds rose 2 basis points to 1.54 percent.
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