Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Canada's economy is poised for a solid first quarter expansion with a 0.7% gain in January and a flash estimate of 0.5% for February, government figures showed Wednesday, the type of momentum the central bank has laid out as a condition for scaling back quantitative easing.
Retailing added to gains in construction and real estate in February, a month where pandemic health restrictions imposed in January were eased. Statistics Canada also said the January gain was led by wholesalers, manufacturers and energy producers.
The economy's strength has surprised investors and the Bank of Canada where policy makers originally thought the economy would shrink in the first quarter. The latest reports now suggest first-quarter growth at an annualized pace of around 5%, according to CIBC and Capital Economics.
Industry sources have told MNI the economy has become more resilient since the first Covid-19 lockdown, and they are optimistic barring major new setbacks on vaccines or heavy new lockdowns.
Statistics Canada's official January figure was stronger than its earlier flash estimate and the market consensus for a 0.5% increase.
One note of caution are signs that Canada is heading into a third wave of rising Covid-19 infections that could slow the economy in coming months. Total output also remains 3% below where it was before the pandemic struck.
Source: Statistics Canada
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.