Robust Canadian growth boosts chances of rate hike as some eye Sept

US GDP Growth In Q2 Upwardly Revised By More Than Expected

Growth in the second quarter was "above the trend for the expansion" but came "after a below-trend pace" in the first quarter, said Jim O'Sullivan, chief USA economist at High Frequency Economics, in a note to clients. It is the pace of expansion the fastest in a little over two years.

The rate surpassed analyst expectations, which called for an increase of 2.7 per cent.

For the whole year, Zandi forecasts GDP will grow 2.1 percent. As such, nominal GDP, which includes these impacts, rose a more modest 2.9 percent. Despite almost uniform skepticism from mainstream economists, he insisted that much faster economic growth is within reach.

Anderson expects growth in the range of 3 percent to 3.5 percent in the current quarter, but he said the hurricane could shave as much as 0.3 percentage points off that figure. And the acceleration of the second quarter was to put into perspective following a first quarter winter gloom that distorts the comparison, they argue, putting forward " a rebound is more statistical than real ". It was the best showing since a 3.2 percent gain in the first quarter of 2015. "But it should not be taken for granted, the u.s. economy is not growth of 3 %", adds he.

The U.S. dollar softened against a basket of currencies following lackluster U.S. economic data that failed to boost expectations for another Federal Reserve rate increase this year.

It is the expansion of the GDP of the United States from April to June. After-tax profits, without inventory valuation and capital consumption adjustments, fell 1.4% in the second quarter after rising 1.3% in the first quarter.

Even with the expected upward revision, GDP growth is still falling short of the optimistic goals President Donald Trump hopes to achieve through tax cuts, regulatory relief and tougher enforcement of trade agreements.




The Canadian dollar strengthened against the USA dollar and traders raised bets for another 25-basis-point rate hike that could come as soon as next month.

As it stands, traders think there's about a one-in-three chance of that happening. There is no reason that we could not manage.

Gross domestic product grew at an annualized 4.5 percent, Statistics Canada said on Thursday, handily topping forecasts for 3.7 percent and making for the best pace of growth since the third quarter of 2011.

The economists expect that the hurricane Harvey, which is now hitting Texas and Louisiana, weighs in on the economic growth.

The GDP report was enough for CIBC chief economist Avery Shenfeld to change his mind.

The central bank has raised interest rates twice this year but some market players doubt the Fed will hike a third time by December in light of persistently weak inflation.

Related news:

Hot News

isis-killer-beheading-video-story-top Taylor Swift took time off to reinvent herself
Sep 01, 2017 - 01:51
West used a floating stage on his recent Saint Pablo Tour. "This has been her life for the past few months", said the source. However, most of these people were also once her friend as well. "I made that b***h famous".

isis-killer-beheading-video-story-top Samsung's Gear Sport smartwatch puts fitness first
Aug 31, 2017 - 01:25
The wireless Bluetooth headphones lets you listen to your favorite music as well as make and receive calls. It also features Running Coach function that provides in-ear audio exercise status updates in real-time.

isis-killer-beheading-video-story-top Nineteen indicted, including Erdoğan guards, over brawl during Turkish leader's U.S. visit
Aug 31, 2017 - 01:23
The head of the president's security detail stepped in, followed by Turkish citizens who were there to see their president. Despite the indictments, it is unlikely that most of the defendants will face actual jail time.

isis-killer-beheading-video-story-top Bangladesh vs Australia: Lyon and Warner Keep Visitors in the Hunt
Aug 31, 2017 - 01:21
David Warner and Steve Smith looked in great touch and they looked like sealing the game on the fourth day itself. Warner instantly reviewed Aleem Dar's decision but replays confirmed it was hitting middle and leg.

isis-killer-beheading-video-story-top US Pacific Command: N. Korea Fired 3 Ballistic Missiles, None Successful
Aug 29, 2017 - 00:42
The "Ulchi Freedom Guardian" war games are a largely computer-simulated exercise that runs for two weeks in the South. The Pacific Command previously said that two of the North Korean missiles had "failed in flight".

isis-killer-beheading-video-story-top Officers patrolling around the home of Chicopee powerball victor
Aug 28, 2017 - 01:19
Wanczyk quit her job on Thursday after learning she had won the prize. "It's just a pipe dream that I've always had". Kurland said, "She's now one of the world's wealthiest people and she has to start acting like it".

isis-killer-beheading-video-story-top Abbas Presses for Two-State Solution, Kushner Provides No Clarity
Aug 28, 2017 - 01:17
Kushner, envoy Jason Greenblatt and Deputy National Security Adviser Dina Powell. Also, the team will examine economic steps ahead of a potential peace deal.

Punishments handed down for Yankees-Tigers brawl
Aug 27, 2017 - 01:06
Betances was tossed after hitting James McCann in the helmet with a pitch an inning after the first major brawl. In addition to the suspensions came a slew of fines - and not just for the above-named individuals.

isis-killer-beheading-video-story-top Man with knife shot dead after stabbing soldier in central Brussels
Aug 27, 2017 - 01:05
The attack in central Brussels came shortly before two British police officers were attacked outside Buckingham Palace in London . The soldiers were not seriously hurt in the attack with one receiving a wound to his face and the other with a wound to his hand.

isis-killer-beheading-video-story-top Republicans quick to dismiss Trump's government shutdown threats
Aug 27, 2017 - 01:05
McConnell said earlier this month that lawmakers and the president the US default on its debt this fall. At his campaign rally, Trump seemed to dare Democrats to block funding for the wall.

isis-killer-beheading-video-story-top 'Saudi-led' airstrike on apartment block kills 12 people
Aug 27, 2017 - 01:03
Aid groups said on Wednesday , the Saudi-led coalition air strike on the outskirts of Yemen's capital, Sanaa, killed 39. The capital is controlled by Iranian-backed Houthi rebels, who have been battling the alliance since 2015.

isis-killer-beheading-video-story-top Moment of truth as Mayweather-McGregor looms
Aug 27, 2017 - 01:01
This glorious mural just went up in Temple Bar, Dublin, immortalising the fight through the medium of street art. But it wasn't until Friday's weigh-in that Mayweather and McGregor were deemed ready to step into the ring .

isis-killer-beheading-video-story-top Amnesty slams coalition's use of unguided missiles in Raqqa
Aug 26, 2017 - 01:21
A United Nations report says at least 300 civilians were killed in Raqqa in the three months since March, as cited by Reuters. The coalition earlier this month acknowledged the deaths of 624 civilians in its strikes in Syria and Iraq since 2014.

isis-killer-beheading-video-story-top Several players suspended for Tigers, Yankees brawl; Cabrera suspended 7 games
Aug 26, 2017 - 01:18
The Yankees' and Tigers' benches emptied for an all-in brawl triggered by a scrap between Miguel Cabrera and Aaron Judge. The game took a turn when Tigers pitcher Michael Fulmer hit Yankees star Gary Sanchez in the top of the fifth inning.

isis-killer-beheading-video-story-top Arsenal superstar Alex Oxlade-Chamberlain tells Arsene Wenger he wants to leave
Aug 25, 2017 - 01:26
I have only one target, to keep everyone on board. "I want him to stay at the club and be one of the big players of the future". Oxlade-Chamberlain is out of contract at the end of this season and Arsenal are reluctant to let him leave on a free transfer.