The last week of August, the unofficial end of summer, brings several economic announcements that will help drive financial markets and potentially set the course for central bank decisions in September. The Canadian economy will come into the spotlight on Friday when gross domestic product (GDP) growth for the second quarter is announced. South of the border, US economic growth and consumer prices will garner investor attention and help investors speculate on what the US Federal Reserve Board (Fed) might do in September.

• Canada’s GDP for the second quarter of 2025 will be announced on Friday. Canada’s economy rose by 2.2%, annualized, in the first quarter, boosted by higher exports ahead of tariffs. Recent data has pointed to a slowdown in the second quarter.
• In the US, a second estimate for second-quarter economic growth will be released on Thursday. The first estimate showed that the economy had expanded at an annualized pace of 3.0%.
• The US personal consumption expenditure price index (PCE) in the US, along with personal spending and income, will be announced on Friday. The PCE is the Fed's preferred inflation gauge. The annual PCE rose to 2.6% in June.
• Taking a trip around the world, China’s industrial profits will be announced on Tuesday, European consumer confidence on Thursday, Japan’s retail sales on Thursday night and India’s economic growth on Friday.
• The big five banks release earnings reports this week. CIBC reports on Thursday. Notable earnings in the US include NVIDIA and Dollar General.

Canadian economic data has been closely monitored as trade tensions persist. Canada’s GDP report on Friday is likely to show some of the impact of trade disruptions with the US. Prime Minister Mark Carney and US President Donald Trump had a discussion last week that included trade. The Canadian government is working towards reaching a trade deal with the US that may reignite the flow of goods between the two countries.

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.