Canada: GDP growth is forecast to slow to 0.2% in April – TDS

According to analysts at TD Securities, US monthly GDP growth is forecast to slow to 0.2% in April on the heels of a 0.5% increase the prior month.

Key Quotes

“A moderation in services will provide the main driver, as further gains to energy output and strong residential construction drive continued strength in goods-producing industries. This will offset a modest drag from manufacturing, owing to a one-off in auto production, while utilities output is also expected to edge lower.”

“Services will benefit from a rebound in real estate although weaker retail activity will weigh on the sector. However, a 0.2% headline print should provide some comfort to policymakers concerned over global headwinds, and keep Q2 GDP tracking well above the Bank of Canada’s 1.3% projection from April.”