Canadian economy sees best growth in almost 6 years in Q2

US GDP Growth In Q2 Upwardly Revised By More Than Expected

The current recovery marked its eighth birthday this summer - old by economic standards - but it is showing some unexpected vigor.

US second-quarter growth was revised upward to the fastest pace in two years on stronger household spending and a bigger gain in business investment, putting the economy on a stronger track, Commerce Department data showed Wednesday. Fallout from Hurricane Harvey may also trim third-quarter growth, though reconstruction is likely to help expansion in the following period.

President Donald Trump's administration has set a goal of 3 percent economic growth for the year, but some economists have said that's unlikely. There is no reason that we could not manage.

That could be a challenge, however, because of the country's aging workforce, slower population growth and low productivity gains.

The president also suggested that other economies overseas were growing at two or three times the U.S. rate. But earnings began to recover a year ago as crude prices stabilized, and exporters are getting a boost because the dollar has weakened since early 2017.

Investment by businesses also improved to growth of 6.9 percent, reflecting higher spending on structures, equipment and intellectual property.

The government's data reflects all purchases, whatever the retail channel, which explains why malls and street-level stores may be suffering even as consumers become more bullish and the broader economy powers ahead.

The Canadian dollar surged more than 1 per cent against its US counterpart on Thursday after data showing the strongest economic growth rate in almost six years, boosting chances of another interest rate hike from the Bank of Canada. This gives the US its strongest quarter since 2015.

Bucks County health department to spray mosquito habitats in Bristol Township
West Nile fever is a less serious form of the illness, although the symptoms can last a long time, according to health officials. To protect yourself from the virus, it's recommended you wear light-coloured trousers and a long-sleeved shirt when outside.

Besides wild cards like Hurricane Harvey's impact on the Gulf Coast, and political uncertainty about issues like tax reform and a possible increase in infrastructure spending, traders are also keeping an eye on the Federal Reserve.

This second estimate is much better than the first (+2.6 per cent), is higher than the expectations of analysts (2.7 per cent).

Still, construction activity rose 2.0 per cent in the month of June, partly due to the end of a construction strike in Quebec.

At a speech last week in Jackson Hole, Wyoming, Yellen focused mostly on the continuing need for regulation, rather than the outlook for growth, but she did term the current economy "strong".

The more robust GDP reading reflected stronger consumer spending and business investment, offset in part by a steeper pullback in spending by state and local governments.

"There seems to be no stopping Canada of late, as above-expected growth in Q2 led to the best four-quarter growth performance since 2006", TD senior economist Brian DePratto said in a note to investors.

"The data do not change fundamentally the picture of an economy that continues to grow at a modest pace in year-on-year with a GDP rise of 2.2% in the second quarter", commented economists from Barclays.

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