There will be several critical economic announcements this week, including gross domestic product (GDP) data for some major economies. With inflation coming down and central banks beginning to lower interest rates, investors will closely monitor these announcements to see if these central banks can navigate their respective economies through a soft landing. Earnings announcements continue this week, which will also give a glimpse into the health of global business activity. Here’s what to watch for this week.

• Statistics Canada (StatsCan) will announce Canada’s GDP for the month of August on Thursday. Canada’s economy expanded by 0.2% in July, benefiting from stronger retail trade. At the time of that announcement, StatsCan estimated that Canadian GDP growth was flat in August.
• Canada’s manufacturing activity in October will be released on Friday. In September, Canada’s manufacturing sector expanded for the first time since 2023, owing to a rise in new orders. Employment growth within the sector also expanded in September.
• The US and Europe will release their advanced estimates of GDP growth for the third quarter on Wednesday. Both economies expanded in the second quarter of 2024. Growth in the US has been relatively resilient despite tight financial conditions, although pockets of weakness have begun to emerge, which could weigh on growth.
• Looking elsewhere, US job openings will be released on Tuesday, China’s manufacturing activity on Wednesday, and European inflation and US personal consumption expenditure price index data on Thursday.
• There will be plenty of earnings announcements this week. Not only do they give a glimpse of the health of the company itself, but earnings can also reflect the health of the economy.

The week will bring several announcements that will garner investor attention and drive the performance of financial markets. GDP data should give some insight into the potential decisions from central banks over the remainder of the year and into 2025.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.