Canadian Economy Contracts in August

After being on a tear, it looks like the Canadian economy might be taking a breather, or worst yet, starting to cool. In the first quarter, the Canadian economy advanced at 3.7%, in the second quarter, it surged 4.5%.1,2 For the first six months of 2017, Canada’s economy expanded by an average of 0.4% monthly. In the second half of 2016, Canada’s gross domestic product (GDP) averaged 0.3% monthly growth. But then things changed. In July, the first month of the third quarter, Canada’s GDP growth was virtually unchanged. July’s flat showing ended eight straight months of gains.3 In August, Canadian GDP decreased 0.1%.4 Everyone knew the Canadian economy couldn’t keep the rapid pace of GDP growth going forever. But one flat month followed by a contraction shows that the Canadian economy is starting to cool. While some could argue you shouldn’t read too much into the two months, the fact is, July and August could signal a return to a more realistic growth rate for the Canadian economy. There are some benefits to having the Canadian economy cool down. It would mean the Bank of Canada would put a temporary end to rate hikes, which would make it less expensive to borrow. That said, a cooling Canadian economy could start to snowball, especially if it’s hit with headwinds like a collapse of the North American Free Trade Agreement. In the meantime, the Canadian economy could also take a hit if consumer confidence levels fall. Canadians are fairly optimistic, but weak third-quarter GDP data could put a damper on fourth-quarter economics. The Canadian dollar is down 4.75% since hitting 2017 highs in early September and a cooling off in the third quarter could put pressure on the loonie., Canada’s Leader in Stock Market Trading Courses

The Canadian economy was on fire in the first half of 2017, but it looks like the economy is starting to cool. Should the weak economic growth persist, it could have a lasting impact on Canadian businesses, the Canadian dollar, TSX, consumer confidence, and spending. What should investors do if the Canadian economy slows down or even comes to a screeching halt? The trading experts at can show investors how to profit no matter what the Canadian economy is doing. is Canada’s oldest and leading stock market trading course, and is designed to help investors of every skill level to trade more confidently and profit consistently. At, we’ll show you how to read stock charts, and teach you about technical analysis, fundamentals, risk management, and capital preservation. You will also learn about commodities, futures, stock options, foreign markets, stock index trading, and Forex (currency) trading. At we understand that no two investors are alike. That’s why we have a unique Lifetime Membership that allows you to re-attend any part of the program as often as you’d like. To learn more about’s stock market trading course, contact us at 416-510-5560 or by e-mail at Sources:
  1. “Gross domestic product, income and expenditure, first quarter 2017,” Statistics Canada web site, May 31, 2017;
  2. “Gross domestic product, income and expenditure, second quarter 2017,” Statistics Canada web site, August 31, 2017;
  3. “Gross domestic product by industry, July 2017,” Statistics Canada web site, September 29, 2017;
  4. “Gross domestic product by industry, August 2017,” Statistics Canada web site, October 31, 2017;
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