US experienced a 4.1 per cent annual growth rate in Q2 2018, but economists warn it’s unsustainable.
Production dropped 0.1%, pulled down by a 3.5% plunge in cars, trucks and auto parts output – the sector’s third consecutive decline.
Rising expectations the US Federal Reserve will raise its key interest rate next month.
Smaller government spending cuts and fewer tax increases this year should boost growth.
Rate increase won’t hurt the Canadian economy, however.
Federal Open Market Committee is expected to continue its $85 billion monthly bond purchases.
Dollar has tumbled 1 1/2 cents US since Central Bank indicates it will be slower to raise interest rates.
Expect the Canadian economy to turn in slightly less robust growth in 2011, thanks to a contraction in the second quarter combined with softer growth in the EU and the US, but the economy will pick up in 2012, according to RBC Economics.