Here is the latest market commentary provided by First National Financial LP.
Canada’s economy took another step toward a “technical” recession (two consecutive quarters of negative growth) as much of the country headed into a long weekend.
GDP shrank for the fifth straight month in May, contracting 0.2%. The weakness was broad-based but the on-going slump in oil prices took most of the blame.
The economy’s overall, sluggish performance appears likely to persist. Forecasts for this week’s employment report call for a decline of 5,000 positions and a 0.1% increase in the unemployment rate to 6.9%.
There is a bright spot though. Construction registered a 1.0% increase and it is expected we will see a 1.0% month-over-month increase in building permits for June.
That forecast coupled with June’s housing starts – which came in at an 11 month high – should bolster housing’s role as a key driver of the Canadian economy right now.
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