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Canadian factory sales fell 2.1% in April, faster than the economist consensus looking a 1.1% decline, adding to evidence the economy stumbled amid supply bottlenecks and the third-wave pandemic shutdowns that are now lifting.
Automobile sales dropped 37% on the month as a global microchip shortage idled assembly lines, Statistics Canada reported Monday, adding that the shortage will likely continue through the second quarter. Sales excluding transportation rose 1.5%, including record sales of lumber and machinery.
Sources have told MNI that the end of Covid lockdowns as a majority of Canadians are vaccinated should allow a strong economic rebound and for the BOC to taper QE in July.