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According to National Bank of Canada’s analyst,  Matthieu Arseneau, today’s GDP does not change the perspective that growth should moderate in the third quarter.  

Key Quotes:

“Canada’s real GDP rose 0.2% in July. This was better than consensus expectations of a +0.1% growth print. Of the 20 broad industrial sectors, 12 registered increases in output.”

“July’s GDP results were better than expected by consensus. Goods-producing industries posted a strong rise of 0.3% as the utilities sector benefited from higherthan-usual temperatures recorded in the month.”

“In a context of trade uncertainty, it’s reassuring to see the manufacturing sector registering a 1.2% rise in July, following a 0.8% jump in the prior month.”

“Services continued to be a stable source of growth, registering a 6th consecutive monthly advance in July.”

“All in all, this morning’s report do not change our view that GDP growth should moderate around 2.0% annualized in Q3, following a 2.9% print in Q2.”