Canada: GDP to increase below the market consensus – TDS

Canada is scheduled to release the Gross Domestic Product Annualized (QoQ) today at 13:30 GMT. Strategists at TD Securities are expecting and increase slightly below the market consensus. USD/CAD trades at 1.3444.

Key quotes

“We look for a 0.2% (annualized) increase for Q4 GDP growth, slightly below the market consensus for 0.3% q/q (saar).”

“The disappointing performance reflects widespread weakness (including in the key household spending segment), which incidentally will bring quarterly growth slightly below the BoC's most recent forecast of +0.3%.”

“Industry-level GDP is expected to increase by 0.2% m/m, above the market consensus for +0.1%, on gains in the services sector, helped by a rebound in rail transportation after the CN strike.”