Weekly Bottom Line
- Real GDP fell by an historic 9.6% in the second quarter (32.9% annualized), led by declines in spending on services as the economy locked down in March and April.
- The fall was deep but short. Spending rebounded in both May and June. Consumer spending rose 5.2% in June, with all major categories seeing improvement.
- Income supports go a long way in explaining the resurgence in consumer spending. The expiry of extended UI benefits at the end of July puts this at risk and represents a clear and present danger to the economic recovery.
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