Canada monthly GDP data for July 2018

  • June growth was flat

  • Year-over-year GDP +2.4% vs +2.2% expected

  • June GDP was +2.4% y/y

  • Goods +0.3%

  • Services +0.2%

  • Manufacturing +1.2% m/m -- strongest month since Nov 2017

  • Non-durable manufacturing +2.4% -- highest in four years -- led by chemicals and petroleum products

  • Full report

Part of the story was a heatwave in July but that was anticipated. USD/CAD dropped on the data but it's a bit overdone. As I wrote before the numbers, the market should have been expecting something strong after the wholesale inventories numbers earlier this week.

The heat was a mixed bag with some construction activity likely curtailed. That sector was down 0.6% with residential construction -1.5%.

Separate PPI data:

  • Industrial product price -0.5% vs -0.4% expected (-0.2% prior)

  • Raw materials price index -4.6% m/m vs +0.7% m/m prior