Though not unexpected, Canada’s economy grew by 2/10ths of one percent in August, the 2nd month in the quarter that is expected to see a bump back up in economic growth.
It is expected that although there have been dire warnings from both the Bank of Canada and other economic forecasters, that after the slump in the second quarter that was hit with not only sluggish growth but the Fort McMurray wild fires, there would be a significant rebound due mostly to the rebuilding of the fire ravaged site of Alberta’s oil sands.
Even with the good numbers this quarter, the economy is only expected to grow by a paltry 1.3% overall in 2016 according to CIBC Chief Economist Avery Shenfeld.
However, manufacturing did rise in the month, mostly on the back of a weaker Canadian dollar which prompts more exports, along with being buoyed by potash and the pickup in natural gas and oil markets, which have bounced back since the fires.
Not surprisingly, the construction industry was a contributor to growth in the month as the housing market continued its sizzling pace witth the building of new condominiums, especially in the Toronto and Vancouver markets.