Canada’s Economy Strengthens As Retail Sales Beat Forecasts
Canada’s economy is proving increasingly robust in the second quarter, with inflation and retail sales coming in ahead of economists’ expectations. The consumer price index rose at an annual pace of 2.5 percent in June, the fastest year-over-year acceleration since 2012, Statistics Canada said Friday from Ottawa. Economists in a Bloomberg survey anticipated a 2.3 percent increase. In a separate report, the agency said the nation’s retailers posted a 2 percent gain in sales in May, the biggest monthly advance since October, and double the median forecast from economists. The reports, a reverse of last month’s weather-related disappointment in sales and inflation data, will bolster expectations for continued interest rate increases this year from the Bank of Canada. The retail sales report in particular, which indicates consumer spending is ticking along, will be taken as a positive signal for the underlying strength of the country’s economy. Sales excluding car dealers were up 1.4 percent, versus a 0.5 percent forecast. Read more at Bloomberg.