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The Canadian economy sputtered into year with expenditure-based real GDP rising by a muted 0.3% in Q4, in line with the market consensus and projections from the Janaury MPR. Details were slightly downbeat on balance, according to economists at TD Securities.

Key quotes

“Q4 GDP printed in line with the market consensus at 0.3%, but industry-level growth for December outperformed at 0.3% m/m (TD: 0.2%, market: 0.1%) on broad strength in goods and services.”

“The soft Q4 data will do little to bolster confidence in the near-term outlook but the strong handoff from December should help offset some of the headwinds that will weigh on Q1. We’re still tracking Q1 growth near BoC projections, and do not think this print gives the Bank further incentive to cut next week.”

“Global rates markets are pushing yields substantially lower this morning, and Canadian fixed income will continue to take their cue from outside forces.”