Canada: Industry-level GDP likely to rise by a muted 0.1% in July – TD Securities

TD Securities analysis team is looking for Canada’s industry-level GDP to rise by a muted 0.1% in July, in line with the market consensus, as a large drag from the goods-producing sector weighs on growth.

Key Quotes

“If realized, this would be the weakest print since the 0.3% contraction in February and leave Q3 tracking in the low 1% range. While this is slightly below BoC projections from the July MPR, on-target inflation and a robust labour market still support keeping rates on hold through the rest of 2019.”

“Markit PMI for September will be released shortly after GDP at 9:30 ET where markets will look for any sign of a recovery following four contractionary readings over the last five months.”