Weekly Economic Update

For the week of July 2 – 6.

Canadian GDP came in at 0.1 percent month over month in April, vs expectations of zero percent growth (economists believed poor weather conditions in April could’ve negatively impacted results). Both Manufacturing and Utilities sales increased for April; Manufacturing increased to 0.8 percent, while Utilities increased to 1.6 percent. Retail sales, however, declined 1.3 percent. On an annual basis, GDP matched consensus at 2.5 percent. The economy is currently on track for growth to accelerate beyond 2 percent in the second quarter.

US personal income in May increased 0.4 percent, while spending decreased 0.2 percent, falling short of the expected 0.4 percent increase. Although the spending rate remained unchanged after adjusting for inflation, the savings rate increased to 3.2 percent, due to incomes exceeding the spending rate.

The University of Michigan’s reading in June for concerns about the economic impact of a trade war came in at 98.2 (expectations were for a 99.0 reading). The expectations measure also decreased to 86.3 from May’s 89.1 reading. However, the conditions gauge measuring Americans’ perception of their finances was up 116.5 from 111.8 in May.

The Canadian dollar is currently trading up against the US dollar. Today’s expected range is 1.3097 – 1.3197.

Source: Bloomberg

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