Nasdaq-ADV: 2,723 Dec: 7,623 NYSE-ADV: 1,207 Dec: 2,933
(Source: Nasdaq)
Canadian gross domestic product in the fourth quarter was extended by 2.6% annually, exceeding broad expectations, as a leap in consumer expenditure, business investment and export lifting growth, data shows on Friday.
Analysts surveyed by Reuters hoped that GDP would grow by 1.8% in the annual requirements in the quarter ended December, similar to the Prediction of Bank of Canada from last month.
The third quarter growth rate was revised to 2.2% from the previous 1%, said Canadian statistics. He added that, every month, the economy in December was extended by 0.2%, reversing the contractions seen in November.
This is mainly because of healthy growth in retail sales and sales tax relief starting from mid -December, he said.
Monthly GDP figures are calculated by industrial output while the quarterly number is calculated by expenditure and expenditure.
Estimated advances show that monthly growth is likely to be 0.3% in January.
Canadian dollars extend the profits after data and strengthened 0.15% to 1.4417 against US dollars, or 69.36 US cents. The results at the two -year government bonds rose 1.6 basis points to 2.639% after the data was released.
Household expenditure, which contributed more than half of the total GDP, rose 1.4% in the fourth quarter, registered the biggest leap since the second quarter of 2022, said Statscan.
Housing construction increased by 3.9%, the biggest quarterly increase since the first quarter of 2021, while business investment, which has largely become slow for the last 11 quarters, posted a growth of 0.7%in Q4, led by an increase in investment and equipment 4.2%.
US inflation data convincing the market, but fears of price increases are still far from completion.
On the basis of per capita, real GDP rose 0.2% in the fourth quarter, the second increase in the last seven quarters.
The Canadian economy, which is slow for a better part last year, has shown signs of an increase lately because interest rates have fallen from more than two high-level decades than the middle of last year.
The BOC has cut the 200 basis points from June to January in January in its efforts to sustain economic growth, mainly because it reduces the amount of immigration and the impact of the area of the US raises a large risk of growth.
The bank has said that they might have to cut tariffs to support the economy if there is a sweeping rate. However, a healthy fourth GDP is likely to help banks pause the interest rate cutting cycle.
“Everything shows the fact that there is no tariff threat, there will be a substantial reason for optimism during 2025 prospects, and maybe a good reason for the Canadian bank to take a pause of interest rates,” said Avery Shenfeld, Director of Implementing and Head of Economists at CIBC.
The 25% sweeping rate can reach almost all Canadian exports at the beginning of March 4.
In the event of a tariff, the BOC tariff decision that matured on March 12 could be a cut, said Shenfeld.
The Currency Market reduces their bets a little to cut the 25 -base point next month to under 50% after the data is released.
Source: Reuters (Reporting by Promit Mukherjee; Editing by Dale Smith, Kevin Liffey and Nick Zieminski)
