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July GDP growth of 0.3% or 3.6% annualized

July would seem to see Canada's economy recovering from its dismal second quarter.  On an annualized basis, there is still hope that the 2.1% target by the BoC can be reached, although the rest of the year will have to generate the same kind of growth that was produced in July.

manufacturing grew by 1.4% which is excellent since it reverse the previous three months of poor performance.  Every sector bar retail and construction advanced, and with continued rising national income savings are also going up (despite the poor -- or maybe because of the poor yields).  Oil and Gas continues to be a drag on the overall GDP numbers, but this is entirely due to price decline (as opposed to decline in volume due to the fires earlier this summer).

Overall, the number was positive for Canada.  However, externalities remain the #1 problem for the country.  America seems to be, at least not in a recession, at the very least operating at stall speed.  The news out of the UK (Second largest market) is hardly inspiring, and stories this morning out of China are downright scary -- talks are of a hard landing are emerging -- as the forces of reality take over an overheated and unsustainable growth in infrastructures expenditures.

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