Yesterday, we learned that Canadian GDP remained stagnant during the month of July. The gains recorded in Manufacturing were offset by losses in Oil and Gas Production, dragging down the CAD to the lows it posted in March. This GDP slowdown has also reinforced recent statements from Governor Poloz to the effect that it is still too soon to say that the Canadian economy is out of the woods.
In spite of this, there are several encouraging signs that lead us to believe that our economy is on the right track. Minister of Finance Joe Oliver stated yesterday that the Federal Government is very close to achieving its zero deficit objective. He also added that his government was more focussed on job creation. However, the fact that the global economy’s recovery is still fragile outside North America is causing the government to be cautious, both in terms of public spending and tax cuts.
Today, we are awaiting the release of the U.S. ADP National Employment Report, as well as both Canadian and U.S. Manufacturing PMIs.
