Monthly GDP for Canada decreased 0.1% MoM in August, much weaker than expectations of 0.2%. Charles St-Arnaud, Economist for Nomura notes that the goods-producing side of the economy fell by 0.5% MoM, with a decline in most categories. The manufacturing sector decreased by 0.6% MoM, the oil and gas sector by 0.5% MoM, due to maintenance in the oil sector, utilities fell by 0.7% MoM as a result of a return to more seasonal weather and construction declined by 0.1% MoM. He notes that overall, the report suggests that the Canadian economy is likely to be weak in Q3, with growth of around 0.1% QoQ ar. However, he feels that some of the weakness, especially in the oil and gas sector is expected to be temporary. Last week, the Bank of Canada reiterated its tightening bias, as it expects the economy to rebound later this year and next year. However, he believes that the first hike will only happen at the July meeting.