Statistics Canada released what can be read as another upbeat report on the Canadian economy Friday, showing January GDP growth advancing at 0.6 per cent, putting it on a four per cent pace in Q1.
The question is whether this sort of performance has any legs to it.
It’s left CIBC Economics wondering if, just as last year, recent data is merely signalling “another false start” to the year.
In 2016, the economy exhibited similar patterns in manufacturing, retail, and wholesale trade sectors early on, only to be pared back over the following months.
The Bank of Canada has coined the term “serial disappointments,” and could perhaps be why they remain more reserved in their outlook.
But it’s not all gloomy outlooks. CIBC is suggesting while there is the possibility the economy decelerates into the year, it’ll likely be at a smaller magnitude.