The Canadian economy fell 0.1 % in May

The Canadian economy contracted for a second consecutive month in May, but signs of rebound was observed in June, according to Statistics Canada.

The federal organization indicates that the real domestic product (GDP) fell 0.1 % in May, the same decline as in April.

Statistics Canada explained the decline in May by the situation in the goods producing goods, especially those of mines, careers and oil and gas.

The manufacturing sector increased by 0.7 % in May, partially compensating for a 1.8 % drop in April, when American customs duties entered into force.

Transport and storage also rebounded after a drop in April.

The good news is that the Canadian economy seems to have gone through the period of maximum commercial uncertainty with less damage than initially planned.

Statistics Canada indicated that a month more busy for the resale of housing, particularly in Toronto, led to a slight recovery of activity in the real estate and rental sector.

With the qualification of three Canadian teams for the second round of the playoffs of the NHLStatistics Canada indicated that the arts, shows and leisure sector was also up in May.

The public sector, on the other hand, recorded decreases after an increase in activity linked to the federal elections of April.

Anticipated rebound for June

The first estimates of Statistics Canada for June indicate an expected rebound of 0.1 % of real GDP. The organization stressed that the vigor of the retail and large trade would be the cause of growth, while the manufacturing sector should have decreased last month.

Overall, Statistics Canada said that preliminary data for the second quarter of the year show that the economy has been essentially unchanged. The first estimates of the organization will be updated when the figures of the Commence From June, next month.

The Bank of Canada said in its report on monetary policy on Wednesday which it expected to decrease Commence real 1.5 % on an annual basis in the second quarter, in a context of considerable uncertainty linked to American customs duties.

Mr. Porter stressed that the monthly figures of Commence Statistics Canada measure production by industry, while Canada Bank estimates will follow actual expenditure in the economy.

The estimates of production and expenses do not always agree, especially in the event of a significant variation in exports and imports, as was certainly the case during each of the last two quartershe wrote.

Mr. Porter said that a sharp drop in Canadian export volumes linked to commercial disruptions with the United States will likely lead to a decline in Commence In the second quarter, according to expenses – the figures that Statistics Canada will publish at the end of August.

Andrew Grantham, principal economist at CIBC Bank, also warned of an excessive interpretation of preliminary statistical Canada estimates for the second quarter.

We will have to wait until the publication of the quarterly GDP next month to know if the economy actually surpasses the expectations of the bank and what could be the consequences on the probability of future interest rate reductions.

The Bank of Canada maintained its 2.75 % key rate for the third consecutive time on Wednesday, due to what it qualified as a sign of resilience in the Canadian economy.