"Durable-goods manufacturing rose 1.6%, as almost all industrial sub-groups recorded growth. Increases were notable in transportation equipment, computer and electronic products as well as furniture and related products manufacturing."
- Statistics Canada
Economy of Canada continued to perform well in July of this year, helped by supportive monetary policy of the Bank of Canada, as well as manufacturing and public sector industries. Country's GDP, however, was unchanged on a monthly basis, while year-on-year it grew 3%. Meanwhile, trade surplus of Canada reached its highest level in July since October 2008. Moreover, construction sector remains a strong provider of positive economic momentum in the 11th economy of world, as they also contributed positively to the gross domestic product in July. Among weakening factors, wholesale trade declined 0.6% during the reported time period. Additionally, negative contribution was provided by agriculture, mining and oil and gas extraction, utilities and transportation sectors of the economy.
Besides that, the Raw Materials Price Index dropped as much as 1.7% in August, following a decline of 1.4% in a preceding month. This indicator used to be a leading one for calculating consumer price index in Canada, as prices that manufacturers pay for raw materials are usually move on to the consumers. Therefore, it can pose some risk for price stability in Canada, even though annual inflation remained at 2.1% in September, above the Bank of Canada's target level and compared to July's reading of 2.4%.
© Dukascopy Bank SA