Canada's GDP data for April should take some air out of the recent recession talk in the country, says Marc Ercolao, economist at TD Bank. GDP by industry rose 0.5% in April from the prior month, and that leaves quarterly GDP tracking above 2% annualized, he says. GDP growth in April was largely fueled by the commodities sector, although 14 of 20 sectors tracked by Statistics Canada recorded growth in the month. Ercolao says the economy is grinding through a soft patch. For the Bank of Canada, he adds, "this argues for patience rather than a pivot." He says the data will take pressure off BOC to cut rates to deal with the economic slump. (paul.vieira@wsj.com; @paulvieira)
Dow Jones Newswires
Pressure Eases on Bank of Canada to Cut Rates With April's Solid GDP Report — Market Talk
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Canada's GDP data for April should take some air out of the recent recession talk in the country, says Marc Ercolao, economist at TD Bank. GDP by industry rose 0.5% in April from the prior month, and that leaves quarterly GDP tracking above 2% annualized, he says. GDP growth in April was largely fu…