07:57 AM EDT, 07/29/2024 (MT Newswires) -- Canadian gross domestic product (GDP) data this week should continue to point to a weakening economy in Q2, said RBC.

Canada will release May and preliminary June GDP on Wednesday, at 8:30 a.m. ET.

The bank expects momentum to fade in May with output growth unchanged after a stronger 0.3% m/m increase in April. That's slightly more pessimistic than Statistics Canada's preliminary estimate for a 0.1% m/m increase, but more in line with early industry readings that flagged a decline in wholesale and retail sales.

In June, GDP growth likely weakened further, dipping to an outright contraction, stated RBC. Total hours worked fell by 0.6%, and manufacturing sales contracted by 2.6%.

Overall, those monthly readings should leave the Q2 quarterly GDP at an annualized 1.5% from Q1. That's in line with RBC's tracking of 1.4% and the Bank of Canada's (BoC) forecast of 1.5% in its latest July Monetary Policy Report (MPR) and should point to another decline in output per capita in Q2 once the increase in population is accounted for.