Capital Economics: GDP growth in June provides solid support for Canada's Q3 economy.

At least from the monthly GDP data of Canada, the rebound in June suggests that the economy is expected to improve in the third quarter. Official data shows that GDP fell by 0.1% in May, the same as the previous month. However, Statistics Canada predicts that GDP growth by industry in June increased by 0.1%, which means GDP for the second quarter is expected to decline by an annualized rate of 0.2%. Capital Economics points out that the decline in May was mainly due to temporary factors, such as equipment upgrades in the energy industry refineries. In addition, the public administration industry also saw a decline, which is seen as a "pullback" from the growth brought by elections in April. Capital Economics says that although GDP in the second quarter is likely to shrink, "we do not believe this will be repeated in the third quarter."