April turned out to be a more difficult month for Canadian manufacturers compared to prior expectations, as the value of manufacturing shipments retreated by -2.1% m/m (-3.3% m/m in volumes), a much sharper decline compared to the preliminary estimate of -1.1% m/m from Statistics Canada. The additional weakness pulled the GDP growth nowcast for Q2-2021 down to 0.69% Q/Q SAAR. The larger-than-expected decline in shipments was partly foreshadowed by the weak merchandise trade numbers for April released last week, where transportation equipment was the main culprit behind a contraction in the overall trade. ... (full story)