Canada grows at best pace in almost 6 years in second quarter

Canada grows at best pace in almost 6 years in second quarter

Activity expanded faster in the spring than initially expected, and the composition of GDP in the quarter bodes well for continued strength over the rest of the year. It's more than double the pace of the first three months of 2017 and better than original estimates for the second quarter.

The first look at corporate profits for the quarter also bodes well for business investment and for hiring, which has been robust so far this year. "So we're really on our way".

Trump promised 4% growth on the campaign trail, but his administration has since set a goal of 3%. To put how silly this is in terms Trump would understand, this is like saying that if he shot an 80 in one round of golf while scoring an average of 100 in his previous eight rounds, he has qualified for the Masters.

Anderson expects growth in the range of 3percent to 3.5 percent in the current quarter, but he said the hurricane could shave as much as 0.3 percentage point off that figure.

Paul Ashworth, chief USA economist at Capital Economics, said he believed that the strength in consumer spending should result in an "even stronger hand-off" for growth going into the current quarter.

Most economists are expecting the economy to expand at a rate of roughly 3 percent in the second half of 2017.

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"It is the best quarter since the first quarter of 2015", said Mickey Levy, at Berenberg.

The department said increased consumer spending was the main reason for the growth.

The likelihood rises to more than 85% between now and the end of the year. But earnings began to recover past year as crude prices stabilized, and exporters are getting a boost because the dollar has weakened since early 2017.

"Overall, the latest GDP data show that the economy grew very strongly over the first half of this year, despite signs of housing slowdown", David Madani, senior Canada economist at Capital Economics, said in emailed comments. Q/q, growth stood at 1.1%. The report said 14 of 20 industrial sectors saw growth in June. "We're of the opinion that the customer is still spending, " Ms. Taylor told analysts earlier this month.

The figure was revised up by an unusually-large four tenths from the growth estimate published last month, due to higher consumer spending and business investment than in the initial report. Second, businesses are starting to more aggressively spend on equipment. Said Morgan Stanley economists Robert Rosener, Michael Dilmanian and Ellen Zenter via research notes. "I believe this reflects heightened optimism regarding the economic outlook, both because the underlying economy is solid and because decision makers anticipate a more favorable policy backdrop". The 1.7% decline in state and local government spending was the sharpest pullback in the category since late 2012. Government fixed investment was slightly weak, rising just 0.5 percent.

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