Canada's economy stagnates in August - Glimmer of hope in September

The Canadian economy remained unchanged in August, as data from Statistics Canada revealed: The real Gross Domestic Product (GDP) stagnated on a monthly basis at 0 percent. Nevertheless, preliminary estimates raise hopes for growth in September. Analysts had already expected the economy to remain stable on a monthly basis, as consensus estimates from BMO Capital Markets suggest. BMO had forecast a slight increase in GDP of 0.1 percent for August, which was slightly above the consensus estimates. Statistics Canada stated that initial information indicates that real GDP rose by 0.3 percent in September. Growth for July was revised to 0.1 percent, after initially being reported at 0.2 percent. In its recently released monetary policy report, the Bank of Canada lowered its growth forecasts for the third quarter from 2.8 percent to 1.5 percent. Growth of 1.2 percent is still expected for the year 2024. Governor Tiff Macklem suggested that further interest rate cuts are anticipated to support demand and keep inflation within the target range, provided economic developments align with the forecasts.