Josh Nye, the senior economist at the Royal Bank of Canada (RBC), notes that Canada’s GDP grew 0.2% in May, 0.1 ppt above consensus, as goods production saw another solid increase.

“Canadian GDP surprised to the upside for a third consecutive month in May. Growth was once again broadly-based with most services industries recording gains (retail and wholesale being key exceptions) and goods production posting another solid increase.

Today’s solid reading for May leaves us tracking annualized growth of nearly 3% in Q2—above our earlier estimate and the Bank of Canada’s latest forecast. Strong growth in the last several months underscores why the BoC has maintained a neutral policy bias even as the Fed is set to lower rates, starting this afternoon.”