FXStreet (Delhi) – Analysts at Scotiabank feels that Canadian economy is taking a step towards economic revival as indicated by the robust export sector growth.
Key Quotes
“Export volumes climbed by 1% m/m. While the prior month’s gain was revised lower to post a gain of 3.6% m/m in June, which is over a percentage point less than originally thought, the fact that we got any growth in July is a plus off of what is still a strong June report.
“Import volumes climbed by 0.5% m/m in July and this signals stabilization in domestic demand.”
“If the data sticks in future revisions, then growth in Canadian export volumes is tracking at almost 12% for Q3 at an annualized and seasonally adjusted pace while import volumes are tracking a much softer gain that on net is driving a significant improvement in net trade as a contributor to GDP growth.”
“Another encouraging point is that breadth was ok with some solid positives interspersed. In dollar terms, exports of industrial machinery, equipment and parts advanced by 5.5% m/m and are up 14.7% as cap-ex related exports are solid. Exports of consumer goods were also higher by 7.3% m/m. Exports of agricultural and fishing products were also up by 3.1% m/m.”
(Market News Provided by FXstreet)