Canada: Focus on GDP data this week – NBF

According to analysts at National Bank Financial, the release of January GDP data will attract the most attention for the Canadian markets this week.

Key Quotes

“Positive contributions are expected from the manufacturing sector and the wholesale sector based on previously-released reports for these indicators. That said, these contributions should be more than offset by slumping output in the oil sector - keep in mind that production cuts in Alberta came into effect during the month. Residential construction might also act as a drag on growth judging from a decline in starts in January.”

“All told, we expect GDP to have shrink 0.1% in the month. We’ll also get data on January’s merchandise trade balance. Rising commodity prices during the month should translate into the first expansion in six months for nominal exports, a development that could lead to a reduction of the trade deficit to around C$3.5 billion. Lastly, Nova Scotia’s budget will be presented on Monday.”