Canada’s monthly although bad shows signs of life

By MoneyWay | Jun 30, 2020

Canada’s economy is crawling out of its deepest hole since the Great Depression, but the path will be long. Numbers released Tuesday show an unprecedented plunge in gross domestic product in April, the first full month of lockdowns to curb the Covid-19 pandemic. That’s worse than the previous record drop of 7.5% recorded in March. It’s the fullest picture yet of what is likely to be a very short recession, with a flash estimate suggesting the economy is already bouncing back. But the report also reveals the damage was profound and will require years to reverse.

U.S. consumer confidence rose in June by more than forecast as optimism increased amid business re-openings, though sentiment remained well below pre-pandemic levels. The Conference Board’s index jumped by 12.2 points to 98.1, the biggest one-month gain since late 2011, according to a report Tuesday. The median estimate in a Bloomberg survey of economists had called for a reading of 91.5.The group’s sub-index of expectations, based on consumers’ outlook for income, business and labor market conditions, rose to a four-month high of 106. Attitudes about the present situation gained 17.8 points to 86.2 — the largest one-month gain since 1974. The rise in confidence shows Americans are regaining optimism as more businesses reopen, especially in hard-hit states like New York, though the improvement was concentrated among higher-income individuals.

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