Canadian economic growth likely to have accelerated in October – TD Economics

The Canadian economy is expected to have grown in October. According to a TD Economics research report, the economy is likely to have advanced 0.2 percent, with growth driven by the services sector. Goods sector output is expected to have been limited by production woes in the automotive industry, reflecting both retooling shutdowns and labor disputes.

Utilities output is also expected to have been a source of downside as the late summer heat wave wanes, though a sharp rise in residential construction should provide an offset, stated TD Economics. Services are likely to have recovered in retail and wholesale trade in addition to a strong contribution from real estate as the Toronto housing market continues to stabilize.

“Our forecast is consistent with Q4 growth near a 3 percent pace, which provides further reason for the Bank of Canada to hike in Q1 2018 given their assertion that the economy is operating near full capacity”, added TD Economics.

At 21:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at 49.3252, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -83.6109. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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