Last week’s soft retail sales data dimmed expectations for further Bank of Canada rate hikes and now the evidence of a worsening economy is spreading. Manufacturing sales fell 2.1% in June according to the flash estimate from Statistics Canada. The largest declines were in the petroleum and coal product, chemical, and food product industries.
A separate StatsCan report showed that Canadian airline passengers rose 22.0% y/y in May but remain 5.6% below the May 2019 level. However the load factor was at 85.5% vs 83.9% four years ago as airlines run on tighter capacities.
Passengers carried by Canadian air carriers, May, 2019-23