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Fed Decision Day | Canadian GDP Increases for Third Consecutive Month

Published July 31, 2019

  • The US Federal Reserve is set for its first monetary easing cycle in a decade later this afternoon. Policy makers at the Federal Reserve are widely expected to lower the federal funds rate by a quarter point when they complete their two-day meeting this afternoon.  Market participants will be anxious to gauge the tone of Chairman Jerome Powell’s press conference and whether he will give any hints on future easing.
  • Canadian GDP data was released this morning with real gross domestic product up for a third consecutive month in May, rising 0.2%. The increase was led by a rebound in manufacturing, with 13 out of 20 industrial sectors expanding. Goods-producing industries rose 0.6%, up for a third month after declining since the third quarter of 2018.
  • US private sector employment increased by 156,000 jobs from June to July according to the July ADP National Employment Report. The vice president and co-head of ADP Research stated, “While we still see strength in the labor market, it has shown signs of weakening.”
  • The Canadian Industrial Product Price Index declined 1.4% in June, the largest decrease since July 2017. Prices for products manufactured in Canada were down 1.4% in June, driven primarily by lower prices for energy and petroleum products. Prices for raw materials purchased by manufacturers operating in Canada decreased 5.9%, mainly due to lower prices for crude energy products.