50842
Manufacturing output rose 0.4% overall.
World Economy

Canada Economy Recovering

Canada’s economy advanced 0.5% in July, the second month of recovery from a significant decline in May and a better showing than many economists predicted.
The growth was led by a return to more normal production in the oil sands sector, which was disrupted by wildfires that forced the evacuation of Fort McMurray, Alta, CTV News reported.
“Recent monthly GDP figures have been deeply skewed by the see-saw in oil sands output, but that story has now run its course,” Douglas Porter, chief economist with BMO Financial Group, said in a research note Friday shortly after Statistics Canada released the data.
“Importantly, the big bounce in July GDP has broken the narrative that the Canadian economy was sinking back into the mire, and will dampen down talk that the Bank of Canada would need to cut rates again soon—at least due to domestic factors.”
Statistics Canada said there was a 19% increase in non-conventional oil extraction, which includes oil sands. It was the driving force behind a 3.9% increase in the overall mining, oil and gas extraction sector.
Conventional oil and gas extraction rose at a slower pace (0.6%) while mining declined by 3.1%, mostly because of a diamond mine closure for repairs in the Northwest Territories following a fire in June.
The output of goods-producing industries overall rose 1% in July while output from service-producing industries advanced 0.3%.
  Q3 Strong
The Statistics Canada report was stronger than a general estimate from economists, who had forecast growth of 0.3%, according to Thomson Reuters.
The gross domestic product figures indicate that Canada’s economy began the third quarter on solid footing after it experienced a significant contraction in the second quarter.
“Much like June, July saw a continued recovery of economic activity following the wildfire-led disruptions in May,” TD economist Brian DePratto wrote in a commentary.
Manufacturing output rose 0.4% overall, due to a rise in non-durable goods such as petrochemicals. The finance and insurance sectors grew 0.9%. The transportation and warehousing sector rose 1.1%, in part because of travel to events such as the 2016 Summer Olympic Games in Brazil.
However, there were pockets of weakness.
Durable goods manufacturing fell 1.4%—including declines from motor vehicles and parts and aerospace products and parts—while construction declined for a fourth month in a row, down 0.8%.
Support activities for mining, oil and gas extraction fell for a sixth month in a row, dropping by 6.9% because of less drilling activity.

Short URL : https://goo.gl/UdztUv
  1. https://goo.gl/KyeBlZ
  • https://goo.gl/tIAECj
  • https://goo.gl/Ll7DpM
  • https://goo.gl/jdeYUD
  • https://goo.gl/RWwmgJ

You can also read ...

Greece Remains Under Supervision
Greece will remain under supervision after it exits its...
 An overwhelming 86% of Germans believe their economy is doing well, up from 75% last year.
Conditions for investors around the world are getting worse....
Tax Reform  Can Boost  US Economy
The American electorate is more than ready for Washington...
Pak GDP Growth Predicted at 10% Over 10 Years
Researchers from Harvard University’s center for international...
Britons have been borrowing heavily through personal loans and credit cards over the last 18 months.
Consumer borrowing grew at almost 10% in August, official...
South Korea’s jobless rate has risen steadily in recent years.
South Korea’s unemployment rate has risen steadily in the past...
Jordan Economy Continues to Grow
While the public sector continues to play a prominent role in...
China Rust Belt Opens Doors
Trucks carrying hi-tech car components rumble in and out the...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus