Consumption in Canada
Canada - Consumption
Economic activity rebounds in January
Confounding analysts’ expectations, the economy grew 0.3% month-on-month in January, following December’s 0.1% month-on-month contraction. According to Statistics Canada, 18 out of the 20 industrial sectors posted gains over the previous month, as improvements in the construction and manufacturing sectors more than offset a fifth consecutive monthly decline in the mining, quarrying and oil and gas extraction sector.
On an annual basis, growth ticked up to 1.6% in January from 1.1% in the previous month, while annual average growth inched down to 1.9% from 2.0% in December.
Dissecting January’s print, Benoit P. Durocher, a senior economist at Desjardins, noted that:
“Real GDP growth by industry exceeded our expectations for January. The widespread increases in various sectors suggest that Canada’s economy is gaining strength after several difficult months. Some risks remain, however, such as adjustments to domestic demand at higher interest rates, which could further trim production growth in the coming months. The carryover for the first quarter (assuming no changes in real GDP by industry in February and March) is higher than we expected, at close to 1% (annualized). We therefore have to increase our forecast for the first quarter to nearly 1.2%, instead of the 0.5% initially expected.”
Canada GDP Forecast
The Bank of Canada expects economic momentum to ease slightly this year and forecasts growth of 1.7% in 2019 and 2.1% in 2020. Met the why particular Consensus Forecast panelists see growth of 1.7% in 2019, which is down 0.1 percentage points from the previous month’s forecast, and 1.7% again in 2020.
Canada - Consumption Data
|Consumption (annual variation in %)||2.6||2.7||2.1||2.4||3.5|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||1.72||1.00 %||Apr 11|
|Exchange Rate||1.33||0.15 %||Apr 12|
|Stock Market||16,481||0.23 %||Apr 12|
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April 17, 2019
Consumer prices increased a seasonally-adjusted 0.3% from a month earlier in March, down from February’s revised 0.4% rise (previously reported: +0.3% month-on-month).
April 12, 2019
House prices fell 0.3% on a seasonally-adjusted monthly basis in March, according to the Teranet-National Bank National Composite House Price Index (February: -0.4%).
April 8, 2019
Housing starts on a seasonally-adjusted annualized (SAAR) basis climbed to 192,527 units in March, according to the Canada Mortgage and Housing Corporation (CMHC).
April 1, 2019
In March, the seasonally-adjusted IHS Markit Manufacturing Purchasing Manager’s Index (PMI) fell sharply to 50.5 from 52.6 a month earlier, marking the weakest expansion in two-and-a-half years.
March 29, 2019
Confounding analysts’ expectations, the economy grew 0.3% month-on-month in January, following December’s 0.1% month-on-month contraction.