Canada’s economic output was flat in July after expanding 0.2 percent in the previous month. Falling short of the consensus forecast calling for a marginal rise, the 0.0 percent monthly growth reading reflected a 0.7 percent decline in output by goods producing industries offset by a 0.3 percent increase by services. The annual output gain shrank by 0.2 percentage points to 1. 3 percent, with a 3.3 percent gain in services partly offset by a 1.8 percent year-on-year decline by goods producing industries.
Stocks dropped on Tuesday, the first trading day of the fourth quarter, as disappointing manufacturing data stoked worries over the U.S. economy. The DJIA traded 250 points lower, or 0.9% after rallying more than 100 points earlier in the day. The S&P 500 slid to trade 0.9% lower. The Nasdaq was down 0.7%.
The Institute for Supply Management said U.S. manufacturing activity contracted to its worst level since June 2009. ISM Chair Timothy Fiore pointed to trade weighing on manufacturing in a statement.
The Canadian dollar remains basically unchanged even as oil prices drop, analysts still believe that the Bank of Canada is in no hurry to cut rates.
Currently Close Range
USDCAD 1.3235 1.3241 1.3232-1.3290
EURCAD 1.4467 1.4430 1.4416-1.4491
GBPCAD 1.6206 1.6269 1.6192-1.6342
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