Canada Economy Shows Signs of Gradual Recovery Amid Quiet Week

Canada's economic calendar will be quiet next week after recent data pointed to an improving domestic backdrop. The second quarter saw economic activity rebound, thanks to stronger household spending and business investment.

The growth rate is unlikely to be sustained, but the overall trend indicates a gradual recovery. Labor market conditions have also shown signs of stabilizing, with employment falling by 42,000 in August, ending a three-month run of job growth.

Household net worth is expected to increase in Q2 national balance sheet accounts due to rising financial assets and stabilizing housing markets. The TSX Composite Index rose another 6.4% in the quarter, while the S&P 500 rebounded 17.2%, reversing its decline in the prior quarter.