Quotes from TD Economics:
– Canadian real GDP increased 0.4% in May, matching market expectations. With May’s healthy increase, real GDP growth has remained in positive territory through the first five months of 2014. Both the goods-producing (+0.5%) and services (+0.4%) sectors recorded solid gains.
– Today’s report is consistent with real GDP growth tracking around 2.5% (annualized) in 2014 Q2. This means that growth in the second quarter is shaping up to be stronger than we had expected, but in-line with the Bank of Canada’s Q2 forecast highlighted in the July Monetary Policy Report.
– Looking further ahead, yesterday’s stronger-than-expected preliminary U.S. real GDP reading for 2014 Q2 (4% annualized) combined with an improving U.S. labour market confirms our expectation of an acceleration in economic activity Stateside. This augurs well for Canada’s export sector, which will increasingly be relied upon to fuel economic growth as domestic sources of growth are likely to wane.
The material has been provided by InstaForex Company – www.instaforex.com