2Q Real GDP +3.7% Annualized, Beats.....>

CANADA DATA: 2Q Real GDP +3.7% Annualized, Beats Expectations

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- MNI Median +3.1%; Bank of Canada projection +2.3%

- 2Q GDP gains were almost entirely driven by trade

- Exports (+3.2% q/q) showed broad gains, led by energy (+5.9%)

- Imports -1.0% q/q while terms of trade became more favourable

- Household spending +0.1% q/q vs. +0.7% prior on cars (-1.4%)

- Households increased saving +1.7% as disposable income +1.3%

- 2Q Housing investment +1.4%, first gain after 5 declines

- Non-residential capex -4.3% q/q

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- June GDP +0.2% vs. +0.1% MNI Median, the 4th consecutive gain

- Growth in 17/20 sectors more than offset a big manufacturing 

(-1.4% m/m) decline

- June wholesale trade +0.9%, retail +0.6%

- Goods +1.1% while services +0.8% in June

- The gain in services was the largest since 2Q 2017

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- IPPI -0.3% in July as China banned Canadian meats