PREVIOUS TRADING DAY EVENTS 29 Sep 2023

According to the Gross Domestic Product GDP report for Canada, GDP remained unchanged in July as the manufacturing sector posted its biggest decline in more than two years, but it most likely ticked up 0.1 in August according to Statistics Canada.

The economy has been slowing down after 10 interest rate hikes since early last year.

The economic data continue to paint a picture of an economy that has stalled, Royce Mendes, head of macro strategy of Desjardins Group said in a note. That should give central bankers confidence that their medicine is slowly working.

Canada is really struggling to grow right now this argues for the bank to remain on hold and lean on the tightening that has already been put in place, said Robert Kavcic, senior economist at BMO Economics.

The manufacturing sector shrank by 1.5 over June, the biggest monthonmonth drop since April 2021, largely due to firms drawing down their inventories.

Source

httpswww.reuters.commarketscanadaeconomystalledjulymostlikelygrewby01aug20230929

Consumer spending increased by 0.4 and the Core  Personal Consumption Expenditures PCE Price index was reported lower than expected change. It is signalling that the underlying U.S. inflation moderated in August.

This report suggests that theres progress on inflation, said Conrad DeQuadros, senior economic advisor at Brean Capital in New York. I think Fed officials are at the point where theyre shifting the focus to…