Monday Monitor May 1st 2017: “After beating expectations the last 7 of the 8 prior months, the Canadian economy took a breather”

Monday Monitor for May 5, 2017

The Last month

In February 2017, Canada’s Gross Domestic Product (GDP) reported a flat 0.1% increase. There is no need for concern, according to our partners at National Bank Financial Economic and Strategy Group (NBF). Even with a modest February and March level of overall economic activity, Canada’s economy is on track to meet the 3.8% expected GDP rate from the Bank of Canada (BoC). The Canadian economy is forecasted to be the fastest growing economy of the G7since the second half of 2016. Canada’s growth compares to the more modest estimate of 2.6% GDP growth for the U.S. economy as consumer spending rates declined and savings rates increased.

The week ahead

The first week of May offers an announcement on the U.S. Federal interest rate. Our partners at National Bank Financial expect U.S. rates to remain flat in light of a stalled U.S. GDP but look for future rate hikes in 2017. In Canada, the Labour Market Survey  will be conducted. This key employment indicator factors in the total percentage of Canadian residents actively seeking work but currently unemployed is expected to have a modest decline. Finally, it is the time when public companies announce their first quarter earnings. Track your portfolio holdings results with the announcement calendar here.

For more economic details and a discussion on the global economic outlook click here.