#Royal tsx slow full#

Likewise, as there are now signs that global product shortages are easing, manufacturing activity should also rebound over the coming months,” he wrote in a note to clients. “Amid elevated commodity prices and cuts to supply elsewhere, we would be surprised if activity in the mining, oil and gas sector failed to bounce back in June. Stephen Brown, the senior Canada economist with Capital Economics, suggested this dip may be short-lived. The preliminary data for May shows a retrenchment in energy, mining and manufacturing activity. This followed Bank of Canada interest-rate hikes in March and April, as well as a sharp repricing in bond markets, which has pushed mortgage rates higher in recent months.

Activity at the offices of real estate agents and brokers fell 15 per cent that month. Real estate activity contracted 0.8 per cent in April, the largest monthly decline in two years. Additionally, a number of minor hockey leagues extended their seasons into April to complete postponed games due to lockdown-related restrictions earlier in the year,” Statscan noted.Īt the same time, higher borrowing costs are rapidly becoming a drag on the housing market.

#Royal tsx slow full#

“The Toronto Raptors qualified for the NBA playoffs this year, playing late into April in their home arena in front of full crowds for the first time since winning a championship in 2019. Arts, entertainment and recreation activity increased 7 per cent, with an assist from sports fans. Air transportation jumped 20 per cent in April, while the accommodation and food services sector expanded 4.6 per cent. High-contact services also continued to gain ground with the lifting of pandemic restrictions. Oil sands extraction grew 5.6 per cent that month, the largest monthly increase since September, 2020. The economy grew at a respectable clip in April, led by a 3.3-per-cent surge in mining and oil and gas output. “We expect growth to slow more significantly as the year progresses as high inflation and rising borrowing costs more into households’ spending power.” And inflation remains uncomfortably high at levels well above central bank’s target,” wrote Claire Fan, an economist with Royal Bank of Canada, in a note to clients. “Despite the surprise decline in May’s advance GDP the economy is still running firmly above long-run capacity limits, evident by decade-low unemployment rates. Higher interest rates are designed to cool demand to bring it back in line with the economy’s supply capacity. Inflation hit a 39-year high of 7.7 per cent in May, and the bank has said it is prepared to act aggressively to bring it back down, even if that means significantly tamping down economic growth. Despite the drop, most Bay Street economists expect the central bank to proceed with a 0.75-percentage-point interest rate hike on July 13.