Canadian real GDP growth likely to have expanded in February

Canada’s real GDP growth data for the month of February is set to be released tomorrow. According to a TD Economics research report, the Canadian economy is expected to have grown 0.3 percent on a wide rise in goods output while services should make a more modest contribution.

Manufacturing is likely to benefit from a recovery in motor vehicle output, as seen by the surge in factor sales while construction should also make a positive contribution on strength in the residential multi-unit component. Multiple oil sands facilities decreased production in February because of a transportation bottlenecks, but these would be countered by a recover from weather-related outages last month.

Home sales are likely to have remained subdued, driving a decline in real estate while a sharp rise in financial market volatility might be a drag on the financial sector. Wholesale sales were also down sharply on the month, but strength in hours worked implies momentum remains strong outside these industries.

“A 0.3 percent print would be consistent with Q1 growth in the mid to high 1 percent range, slightly above the Bank of Canada’s 1.3 percent projection from the April MPR”, added TD Economics.

At 21:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was bullish at 81.5937, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 70.1639. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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