U.S. shows surprising briskness in growth

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Statistics Canada's Survey of Employment, Payrolls, and Hours on Wednesday showed wage growth accelerating to 2.7 per cent year-over-year in June, the fastest pace since December 2015.

Trump talked up the latest figures in a speech Wednesday in Springfield, Missouri, laying out his plans for tax reform.

The budget the president released in May projects GDP growth will rise to 3 percent over the next four years and remain at that level for the rest of the decade. Fixed nonresidential investment rose at a 6.9% pace last quarter, up from an initial estimate of 5.2%, including stronger spending on software.

Second-quarter growth was substantially above the Bank of Canada's forecast and extended a recent strong run for the economy that prompted the central bank to raise rates in July for the first time in seven years.

The economy surged past second-quarter expectations with growth at an annual rate of 4.5 per cent, giving the country its best start to a calendar year since 2002, Statistics Canada said Thursday.

There are several reasons that his goal is probably far-fetched, namely the country's aging workforce and slower population growth than in the past.

"Still, this will be, to the extent possible, a 'dovish hike, ' as the Bank will hint at a likely pause after September, lest markets push the Canadian dollar with too much enthusiasm and threaten downside pressure on exports and CPI".

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The U.S. dollar softened against a basket of currencies following lackluster U.S. economic data that failed to boost expectations for another Federal Reserve rate increase this year. Inventories also rose, particularly in the manufacturing and trade sectors.

And as we noted when the original second-quarter number was reported a month ago, the growth in the second quarter was likely more attributable to Obama administration policies than Trump's since the current president hasn't been in office long enough to have had a measurable effect on the economy.

The revisions indicate greater momentum going into the second half of 2017, as well as showing that growth in GDP - the value of all goods and services produced - may be broadening beyond household spending. A separate report on Wednesday from the ADP Research Institute showed companies added more workers than forecast in August, a positive sign ahead of the Labor Department's monthly payrolls data due Friday.

Business investment spending has been a laggard through most of this expansion but appears to be perking up this year.

Mark Zandi, chief economist at Moody's Analytics, said he expected growth for the current quarter of 2.9 percent and a 2.6 percent gain for the fourth quarter.

The U.S. economy rebounded sharply in the spring, growing at the fastest pace in more than two years amid brisk consumer spending on autos and other goods.