Weekly Economic Watch
The National Bank of Canada | May 03, 2015 03:28AM ET
Canadian GDP Growth Stalls in February
Yesterday’s release of Canadian GDP data (February) revealed that the economy stalled during the second month of 2015. In addition, Statistics Canada revised January’s figures downward to –0.2%, which underscores the fact that Canada’s economy is having a hard time getting out of the gate in 2015, and it’s quite possible that it will post its worst quarter in the past three years.
Analysts explained that the flat reading is related to temporary factors such as the bad weather and automobile plant closures in Ontario. The effects of the oil shock are still being felt, however, as shown by the major 15% contraction in the oil and gas production support services industry. We are expecting that our economy will pick up the pace in the coming months, just like it will across the border, albeit at a slower pace.
The loonie reacted badly to the news, and ended the day down against the greenback.
Today we are awaiting the release of several manufacturing indexes in both the United States and Canada.
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