"TIME TO FLIP THE SCRIPT"Interesting I was saying this since the spring. These central bankers went on a "big boy pants" rage to save face, now we're 3years removed and still have painful rates esp in the US.
https://financialpost.com/news/economy/bank-of-canada-economic-data#:~:text=%E2%80%9CThe%20persistent%20struggles%20of%20the,growth%20of%201.3%20per%20cent.
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Weak manufacturing sales are adding to the evidence that Canada’s third-quarter gross domestic product will come in well under the central bank’s expectations, likely amplifying calls for policymakers to get more aggressive on rate cuts. Manufacturing sales fell 1.3 per cent in August from July to their lowest level since January 2022, mostly due to a decline in metals, petroleum and coal, according to Statistics Canada data released Wednesday. On a year-over-year basis, sales dropped 4.4 per cent. The falling sales and volumes, coupled with a drop in inventories, indicate “manufacturing GDP weakened, as StatsCan suggested was the case in its commentary alongside the preliminary estimate that GDP was unchanged in August,” Stephen Brown, assistant chief North America economist at Capital Economics Ltd., said in a note.
GDP rose by 0.2 per cent on a month-over-month basis in July, but a flat early estimate for August, released on Sept. 27, probably means that third-quarter growth will lag the Bank of Canada’s 2.8 per cent forecast.
Most economists at major financial institutions now expect third-quarter annualized GDP to come in at one per cent to 1.5 per cent. Brown is estimating a 1.2 per cent growth rate.
“The persistent struggles of the Canadian economy mean it’s time for the Bank of Canada to flip the script,” Royce Mendes, managing director and head of macro strategy at the Fdration des caisses Desjardins du Qubec, said in an analysis Wednesday.
He expects third-quarter GDP growth of 1.3 per cent.
“That’s particularly appalling given that the working-age population has grown 3.5 per cent over that same period,” he said, adding that growth over the past two years has expanded at an annualized pace of “just” one per cent.