National Bank of Canada Economic Watch
The economy bounced back strongly in the quarter, as real GDP jumped 3.3% annualized, one tick below the consensus forecast. The previous quarter’s growth, meanwhile, was revised upwardly by four ticks to 0.3%. Domestic demand surged 3.9% in the three months to June (compared to -0.1% in Q1). Household consumption was up 3.3% in the quarter. Residential investments also made a strong gain, increasing 10.4%. Business investment also contributed to the strong performance, with non-residential structures investment increasing 6.5% and machinery and equipment investment gaining 22.6%. Intellectual property was down 2.3%. Government expenditure dragged on growth, as investment fell 11.0% while consumption rose 3.9%. Trade had a strong positive impact on GDP, as exports surged (15.1%) while imports edged up (+1.1%). Inventory drawdown occurred during the quarter, a sharp contrast with the strong print registered in the previous quarter, resulting in a strong negative contribution to GDP (-4.9 p.p.). Nominal GDP rose 13.8% on an annualized basis following a 5.5% gain in Q1. Also in nominal terms, disposable income rose an annualized 8.8%, boosted by government transfers. Household consumption, meanwhile, rose 6.9% annualized, up from 4.5% in the previous quarter. As a result, the savings rate rose from 3.3% to 3.7%. Industry data showed that output was up 0.3% in June, above consensus expectations (+0.2%). Statistics Canada also released an advance estimate for July showing flat growth.
Source: nbc.ca
6 questions to ask yourself to improve your financial literacy
| (NC) If you’ve been feeling overwhelmed about money or simply want to strengthen your financial habits, consider this your financial wellness check. Sometimes the best way to improve your financial well-being is by taking a step back and asking yourself a few simple questions: 1. Is my budget too complicated for me? An intricately designed budget might seem like what you need to gain control over your spending, but a complex spreadsheet might actually hinder any progress towards your financial goals. Instead, try focusing on a few core areas of your spending, like: housing transportation food savings leisure spending Once you’ve created a simple budget, then you add always add more detail later as your needs evolve. The idea here is to make something that’s easy to maintain. 2. Do I understand how my money is protected? Canada has strong deposit protection. The Canada Deposit Insurance Corporation (CDIC), protects eligible deposits at member institutions in the rare event of a bank failure. You can find a full list of their members on their website. 3. Am I thinking about money in a healthy way? Keep a positive outlook on your financial future by reminding yourself not to compare your financial progress to the people around you. Everyone’s situation is unique, especially when it comes to money, so it’s important to focus on what works for you. Part of this includes setting realistic and achievable goals for yourself. It’s important to feel confident that you’re making the right financial decisions based on your situation. At times, this can be challenging, so it’s important to seek guidance from reliable sources and people you trust. 4. How can I keep my money safe? When choosing financial institutions or products, consider if and how they are protected. CDIC protects eligible deposits, such as GICs, cash and foreign currencies, up to $100,000 per account type at each member institution, which include banks, federally regulated credit unions, and trust and loan companies. Coverage is free and automatic at member institutions. You can find out how your deposits are protected through online tools like their online calculator. 5. Am I making time for regular financial check-ins? On a regular basis, try scheduling 20 minutes to: review recent spending update savings goals check your protection consider upcoming large expenses track progress towards your goals Regular check-ins can feel much more manageable than trying to review several months’ worth of finances all at once. As part of this financial check-in, make a point to regularly check your financial protection. 6. What’s one financial skill I want to improve this year? You don’t need to learn everything about financial literacy at once. Instead, each year choose one area you’d like to focus on like budgeting, maximizing saving, understanding credit or investment options. Breaking down financial concepts and learning them one-by-one is more productive than trying to tackle it all at once. Whether you’re simplifying your budget, rethinking your relationship with money, or learning more about how your savings are protected, each step matters. www.newscanada.com |
| Have mortgage questions? I’m here to help you! Please feel free to contact me with any questions you may have. It would be a pleasure to assist you or any one of your friends or family members! |