Prior month -0.1% Advanced estimate for the month of July 0.1%
GDP Q2:
Q/Q annualized -1.6% vs -0.6%Prior 2.2%
The Canadian dollar weakened across the board following the release as the data disappointed across the board. StatCan notes that the contraction in the second quarter was driven by significant declines
in the export of goods, as well as decreased business investment in
machinery and equipment. These declines were tempered by faster
accumulations of business inventories, higher household spending and
lower imports of goods.
Traders increased slightly the rate cut bets for the BoC which now show 27 bps of easing by year-end compared to 24 bps before the release.
