Canada April GDP +0.3% vs +0.3% expected

• Prior was +0.7%
• May prelim estimate -0.2%

CIBC on the flash May reading:

Declines in mining, oil & gas and manufacturing suggest that the monthly drop in May was at least partly due to supply issues rather than slowing demand, which could add to, rather than subtract from, current inflationary pressures.

For Q2 as a whole, GDP appears to be tracking just below a 4% annualized pace, compared to the 6% rate the Bank of Canada had forecast in its April MPR. However, other than perhaps a quicker retreat in housing activity, the slower than projected growth appears to be due to supply rather than demand side factors. As a result, it will do little to ease the Bank of Canada's concerns regarding current inflationary pressures. A slowing in other elements of domestic demand, including in retail sales and consumer-facing services, is expected to show up more during the second half of the year, with households currently able to use the excess savings put aside during the pandemic to cushion the blow of high inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term and interest rate increases.