newsmoments.net
newsmoments.net November 17, 2017


Canadian economic growth 'gangbusters' in second quarter thanks to consumers

01 September 2017, 01:57 | Simon Arnold

Canadian economic growth 'gangbusters' in second quarter thanks to consumers

David Rosenberg: With Canada's economy on fire, I'm turning more bullish on the loonie

It's more than double the pace of the first three months of 2017 and better than original estimates for the second quarter.

And that was before Thursday's release of GDP data from Statistics Canada, which showed Canada's economy expanded by a very strong 4.5 per cent, annualized, in the second quarter of 2017. This shattered market expectations for a 3.7% increase, according to economists at Royal Bank of Canada, and follows a 3.7% advance in the January-to-March period.

Gross domestic product, a broad measure of the goods and services produced across the US, rose at a seasonally and inflation-adjusted annual rate of 3% in the second quarter, the Commerce Department said Wednesday.

Most experts believe the central bank will raise interest rates just once more this year, but a faster economy or an increase in wages or inflation could prompt policymakers to move more quickly to tighten monetary policy and shrink the Fed's balance sheet in 2018. Activity expanded faster in the spring than initially expected, and the composition of GDP in the quarter bodes well for continued strength over the rest of the year. "And while it was once again consumers in the driver's seat, another strong quarter of income growth meant that households were able to increase their savings rate a touch while still keeping their wallets open".

For the entire year, Mark Zandi, chief economist at Moody's Analytics, is forecasting growth of 2.1 percent.


However, history tells us that once rebuilding kicks in, the net impact of disasters on national GDP tends to be small and short-lived (even Katrina had no more than a fleeting effect on GDP growth), so we should still be on track for a solid economic performance through the rest of the year.

Gross domestic product grew at an annualized 4.5 percent pace, handily topping forecasts for 3.7 percent and making for the best rate since the third quarter of 2011.

This is the strongest two-quarter growth since 2002, in which there was a half-year increase of 2.1%.

Investment by businesses also improved to growth of 6.9 percent, reflecting higher spending on structures, equipment and intellectual property.

As it stands, traders think there's about a one-in-three chance of that happening.


The quarterly GDP growth rate was above 3% eight times during President Barack Obama's eight years in office.

With good news about Canada's economy rolling in on a regular basis in recent months, Canadians are feeling pretty positively about the future. Some are now saying that the devastation from Hurricane Harvey could shave about a half-percentage point off growth this quarter.

The likelihood rises to more than 85% between now and the end of the year.

"Overall the USA economy and labor market remain in good shape, and will easily withstand any temporary drag from Harvey", Gus Faucher, chief economist at PNC Financial, wrote in a report on Wednesday.




Other News

Trending Now

GCSEs: 'Schools still have work to do to close the attainment gap'
The results revealed that 49% of pupils achieved an A*-A or equivalent with 99% achieving at least one A*-C or equivalent. Thomas Sheehy-Jamieson was ecstatic with his nine A*/A grades and grade 9 in English literature .

San Franciscans unite to smite alt-right with minefield of doggy shite
The Southern Poverty Law Center, which tracks hate groups, does not classify Patriot Prayer in those terms. Officials are also urging the public to simply ignore the rally and not give it any more attention.

Mom dies in Harvey floodwaters while saving her infant daughter
Rescuers lifted them into the boat and tried to revive the Beaumont mother, but Penisson said she never regained consciousness. A bystander helped load the mother and daughter into his truck and transported them to a waiting ambulance.

India Finally Bans Islamic Law That Let Men Instantly Divorce Their Wives
Some of these practices have been rendered illegal in several Muslim-majority countries. Time has come to empower women as injustice is being meted out against them.

Lack of Giants' offensive improvements beginning to wear thin on Ben McAdoo
The Giants have 18 days until they start their season, which is not a ton of time for Beckham to fully recover. Beckham said after the game he was relieved to just have a sprained ankle, which a Tuesday MRI confirmed.

Amazon to cut prices on Whole Foods staples
It will also make Whole Foods' private label products available on its website, on AmazonFresh, on Prime Pantry, and Prime Now. Amazon and Whole Foods announced in a joint statement that the acquisition will be completed by Monday, August 28 .

Weather system could turn tropical off Carolinas coast
Additional rainfall is expected Sunday into Monday across the Florida peninsula, before this system moves out of the area. The system is then forecast to hug the coast of North and South Carolina Monday evening into Tuesday morning.

Taylor Swift took time off to reinvent herself
Fair enough, it was a huge hit back in the day, but the social media star took it a step further, saying: "I love Taylor Swift ". The video opens in a graveyard, zooming in on a tombstone engraved with "Here Lies Taylor Swift's Reputation ".

Olympic runner found dead in Scottsdale condo complex swimming pool
He switched nationality to Peru a year ago and ran for his mother's home country at the Rio Olympics, finishing 15th in the 5000 metres.

Joel Osteen makes haste to save face on "GMA"
Many posted photos that showed very little standing water in the church parking lot. Photos of the flooded church were also posted by members of the church on Twitter .