The increase reflects higher sales in the food, beverage and tobacco subsector, according to Statistics Canada.
- Farm products: -9.5%
- Food, beverage and tobacco products: +2.3%
- Personal and household goods: -1.1%
- Motor vehicles and motor vehicle parts and accessories: +0.2%
- Building materials and supplies: +1.4%
- Machinery, equipment and supplies: +1.7%
- Miscellaneous goods: +0.4%
Canadian economic data has been deteriorating but this is a solid reading. The BOC was the first central bank to hike and I think could be the first to pivot. However seeing what's happening in GBP could give the BOC pause.
The market is pricing in a 94% chance of 50 bps in October with a 6% chance of 25 bps. That could be the end of the road for a bit.
