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The Canadian economy recorded its seventh consecutive monthly gain in August, driven by crude oil and financial services, which helped maintain the upward trend in interest rates.
Gross domestic product climbed 0.1% in the month, Statistics Canada reported in Ottawa on Wednesday. This beat the median estimate in a Bloomberg survey to make little change in production.
Alberta's oil production has reached a record high and the rise in equity and bond trading has significantly increased the contribution of financial services companies since May 2017.
According to the Bank of Canada, the economy has reached its peak capacity or almost, this month has raised interest rates for the fifth time since July 2017 and indicated that additional increases were needed to bring the economy back up. monetary policy in the neutral state. Other important indicators support the idea that the economy no longer needs a boost, with inflation of around 2% and an unemployment rate close to record lows.
Although August's rise in GDP was a surprise, it did not have the magnitude seen in previous reports, with 12 of the top 20 industries showing declines.
Highlights of the report
• Unconventional crude oil extraction was one of the main drivers of growth in August, up 3.2%.
• The other major gain was 1% in financial services
• Statistics Canada revised the June GDP figure to a 0.1% increase from a previous flat reading, which brought the number of consecutive months of expansion for two consecutive months to seven. Growth was similar last year when Canada led the G7.
• Utilities production increased 0.8%, reflecting the second month of hot summer weather in Canada. The other driver of growth in August was the 0.2% rise in the public sector
• The slowdown in real estate in 2018 continued with a 0.4% drop in construction. Residential projects declined 1.6% and the decline in the last three months is the largest since the beginning of 2009, Statistics Canada said.
• The manufacturing sector led the decline with a 0.6% decline, mainly due to production shutdowns at auto badembly plants. Retail and wholesale sales also declined in August and copper and nickel mine production fell to its lowest level since 2010
With the help of Erik Hertzberg.
Bloomberg.com
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