US real GDP grew at a modest 2.3 per cent annual rate in the second quarter, led by positive contributions from personal consumption, exports, and government expenditures. Most importantly, the contraction in GDP initially reported for the first quarter was revised away, with GDP now estimated to have grown 0.6 per cent.
Improved US economic growth will help the Canadian economy regain its footing in the second half of the year, but may also prompt the US Federal Reserve to begin tightening monetary policy as early as September. If so, we could see Canadian long-term interest rates, and therefore longer-term mortgage rates, dragged higher in spite of recent action by the Bank of Canada.
For more information, please contact:
Cameron Muir Brendon Ogmundson Chief Economist Economist Direct: 604.742.2780 Direct: 604.742.2796 Mobile: 778.229.1884 Mobile: 604.505.6793 Email: cmuir@bcrea.bc.ca Email: bogmundson@bcrea.bc.ca
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BCREA ECONOMICS NOW: US Economic Growth (Q2'2015) - July 30, 2015
Blog by Polly Reitze | August 3rd, 2015
