07:19 AM EDT, 06/28/2024 (MT Newswires) -- Bank of Montreal (BMO) noted that Canada will release April's gross domestic product (GDP) at 8:30 a.m. ET Friday.

Following a weak end to Q1, real GDP growth looks to have bounced back in April, said the bank. Increased auto-related activity, after retooling weighed in March, provided a lift to manufacturing and wholesale activity.

Retail sales rebounded, but consumer spending continues to be constrained by high interest rates. The housing market faces similar dynamics, with home sales slipping in the month, even as housing starts were little changed.

All told, BMO is looking for growth to clock in at a "solid" 0.4% m/m, a tick above Statistics Canada's flash estimate. That would put Q2 GDP off to a strong start even after accounting for March's weak hand-off.

The bank will be watching the flash estimate for May growth, with early indicators pointing to a small rise in activity.

The US dollar (USD) is softer (BBDXY -0.15%), with the Canadian dollar (CAD or loonie) firmer (CAD per USD -0.07%), added BMO.