Canada’s economy was flat in May, stoking fears a slowdown is already underway
Canada’s financial system did not develop in any respect in Could, the second month of the yr that its did not eke out any positive aspects, Statistics Canada stated Friday.
The info company stated {that a} slight uptick within the service sector wasn’t sufficient to offset a decline in goods-producing industries, so the overall worth of all financial output in the course of the month was primarily unchanged from what it was a month earlier.
The flat displaying was truly higher than the slight lower of 0.2 per cent that economists had been anticipating.
A complicated estimate for June means that the financial system fared solely barely higher final month, too, with a rise of 0.1 per cent.
Closing numbers will not be out there till the top of August, but when June’s superior determine bears out, which means Canada’s financial system grew by 1.1 per cent within the second quarter — not a powerful displaying by any metric, however no less than higher than the contraction of 0.9 per cent seen within the U.S. over the identical interval.
“Immediately’s GDP knowledge recommend that the Canadian financial system was slowing even earlier than the biggest of the Financial institution of Canada’s charge hikes was delivered,” CIBC economist Andrew Grantham stated.
Extra to come back
