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Canada's GDP Gets A Slight Boost, Says Scotiabank

BY MT Newswires | ECONOMIC | 08/27/25 09:54 AM EDT

09:54 AM EDT, 08/27/2025 (MT Newswires) -- Canadian gross domestic product in July got a bit of a boost on Tuesday ahead of Friday's numbers for Q2, June and July GDP, said Scotiabank.

Statistics Canada's advance indicator for manufacturing sales in July was reported to be up by 1.8% month over month, seasonally adjusted in nominal terms. The advance indicator for nominal wholesale trade in July was reported to be up 1.3% month over month.

After adjusting the nominal readings in order to get volume estimates and pushing it through a simple equation that the bank runs, Scotiabank gets 0.2% month-over-month GDP growth in July.

That's mainly based on housing -- starts higher, ancillary housing services to be lifted by resales -- and these numbers, but the bank leans more to downside than upside risk to that estimate, given that hours were slightly softer, retail volumes slipped after a powerful surge in June and wildfires could have exacted a minor toll.

Still, Q3 GDP is getting a bit of baked-in momentum so far based on what probably happened to the way Q2 ended and very preliminary tracking into July, added Scotiabank.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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