MNI DATA BRIEF: Canada May Flash Factories Gain Amid Lockdown

Canada's factory sales rose 1% in May according to flash government estimates, welcome news in a month where employment and retailing were set back by third-wave lockdowns that have since been lifted, and aiding the central bank's view of a resilient economy set for a second-half rebound.

Statistics Canada also reported Thursday that its flash estimate of wholesale sales rose 1.1% in May, though that sector has often been more resilient through the pandemic. These reports come after a report Wednesday showing a flash estimate that retail sales fell 3.2% in May. Sources have told MNI the rebound should be enough for the BOC to taper QE again at its July meeting.

According to StatsCan, its secondary measure of employment based on payrolls was also positive, with an April gain of 166,900, or 1.0%. The main Labour Force Survey for April showed a decline of 207,000 or -1.1%.