Canadian economic growth 'gangbusters' in second quarter thanks to consumers

"This is a strong performance from the Canadian economy, not just in the second quarter but in the entire first half of the year".

Gross domestic product, a broad measure of the goods and services produced across the US, rose at a seasonally and inflation-adjusted annual rate of 3% in the second quarter, the Commerce Department said Wednesday.

The second-quarter result likely cements the likelihood of at least one more rate increase from the Bank of Canada in 2017.

Investment by businesses also improved to growth of 6.9 percent, reflecting higher spending on structures, equipment and intellectual property.

Zandi is forecasting that growth in 2018 will be an even stronger 2.8 percent.

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Trump promised 4% growth on the campaign trail, but his administration has since set a goal of 3%.

Advertisment Canada's economy is expanding at its fastest annualized rate in six years. In addition, the u.s. president still has not managed to enact a law in the economic field, due to political deadlock in Congress. Increasing household income on the back of healthy job gains aided in underpinning growth, and was enough to bring the household savings rate slightly to 4.6 percent from first quarter's 4.3 percent.

"There's still fuel in the consumer's tank", said Donald, who credited robust economic fundamentals like job and wage growth for spending's resilience.

Figures released Thursday morning by Statistics Canada showed this country's gross domestic product grew by 1.1% between March and June, an improvement from the 0.9% growth seen in the previous three-month period.

During last year's campaign, Trump pledged to boost economic growth to 4 percent or better.

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Wednesday's report included the government's first estimate for profits at USA corporations during the second quarter.

The quarterly GDP growth rate was above 3% eight times during President Barack Obama's eight years in office.

In terms of Q3 growth, CIBC still calls for expansion of closer to 2%, "with export and inventories among the categories likely to weigh on that quarter's pace, and housing turnover remaining slower than it had been earlier in this cycle".

Economists are not looking for Hurricane Harvey to make much of an impact on economic growth, believing that a spike in the cost of gasoline and other energy prices will be short-lived as refineries along the Texas Gulf Coast resume operations quickly.

GDP grew 0.3% in June alone, with 14 of 20 industries seeing gains. Most are betting on an October hike, with the likelihood at 86.8 percent, up from 72.4 percent.

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"Overall the USA economy and labor market remain in good shape, and will easily withstand any temporary drag from Harvey", Gus Faucher, chief economist at PNC Financial, wrote in a report on Wednesday.


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