We hope everyone is enjoying their last gasp of summer over the Labour Day Weekend. The good news is that the Canadian economy is robust and growing in sync with the world economy. Remember that news headlines tend to be negative but there are a lot of reasons to be optimistic including:
- Canada’s GDP (Gross Domestic Product which measures overall economy health) expectations are near 3.0% for 2017. More importantly this represents an increase of 4.6% in the 12 months leading up to the end of May.
- Canadian’s disposable income (after expenses) has surged 6.6% which has increased overall domestic demand. Canadian consumers are confident.
- The U.S. Economy is also on solid footing the Bureau of Economic Analysis revised up from 2.6% to 3.0%, the highest quarterly rate in two years.
While trade agreements such as NAFTA renegotiations loom large and interest rates will likely increase in the next week or quarter, the Canadian Conference Board Index climbed to 122.9 from 120.0 in July. This was well above its 12-month moving average of 114.7. The details of the report showed the present situation tracker jumping 5.8 points to a 16-yearhigh of 151.2. It appears as labour markets tighten and most financial markets achieve new highs the Fall of 2017 looks promising.
Read more good news and an excellent detailed report from our partners at National Bank Financial Economics HERE