• Prior was +0.7%
  • Could prelim estimate -0.2%

CIBC on the flash Could studying:

Declines in mining, oil & gasoline and manufacturing counsel that the month-to-month drop in Could was not less than partly on account of provide points moderately than slowing demand, which may add to, moderately than subtract from, present inflationary pressures.

For Q2 as an entire, GDP seems to be monitoring just under a 4% annualized tempo, in contrast to the 6% price the Financial institution of Canada had forecast in its April MPR. Nevertheless, aside from maybe a faster retreat in housing exercise, the slower than projected development seems to be on account of provide moderately than demand aspect elements. As a outcome, it should do little to ease the Financial institution of Canada’s issues relating to present inflationary pressures. A slowing in different components of home demand, together with in retail gross sales and consumer-facing companies, is anticipated to point out up extra throughout the second half of the yr, with households presently ready to make use of the surplus financial savings put apart throughout the pandemic to cushion the blow of excessive  inflation  and rate of interest will increase.