The loonie (FXC +0.5%) is having a big session after upward revisions to Q2 and Q3 GDP growth and a strong early Q4 print. On the downside - while October and November looked strong - December shows a contraction of 0.5%. Statistics Canada blames the weak December number on the harsh winter's effect on retail sales which fell 2.1%. Canada? Harsh winter? Seriously?
Overall, Q4 GDP growth at an annualized pace of 2.9% follows 2.7% in Q3, 2.2% in Q2, and 2.9% in Q1. For the year, GDP grew 2% vs. expectations of 1.7%.
"While today’s GDP report is a bit of a mixed bag, the bigger picture is that the Canadian economy looks to have had better momentum than widely appreciated through much of 2013,” says BMO's Doug Porter.