09:00 AM EDT, 09/27/2024 (MT Newswires) -- Canadian real gross domestic product Friday advanced 0.2% month over month, slightly more than the 0.1% consensus forecast and an acceleration from the flat reading in June, said Desjardins.

A rebound in retail sales provided much of the strength, noted the bank. That momentum likely continued in August but comes after a long period of very weak retail receipts.

The acceleration in the pace of overall economic growth in July came despite wildfires restricting activity in parts of the country.

That said, the pickup appears to have been ephemeral, with the flash estimate for August once again showing no increase, pointed out the bank.

Growth appears to be tracking just over 1% for Q3, well below the Bank of Canada's 2.8% forecast. As a result, Desjardins sees Canada's central bank lowering rates by 50 basis points in October.