1155 ET - The Canadian economy's 1Q growth was a rebound from the previous quarter, easing fears of a slowdown for now. CIBC Chief Economist Avery Shenfeld says the pickup was "a rebound from a decline in GDP in 4Q," and "not really a signal of a coming turning point." He notes that retailers participated in the bounce, but warns that "it's unlikely that we'll see a repeat of that in 2Q" as rising unemployment and higher gasoline prices squeeze household spending. Some of the inventory rebuild was met by imports rather than domestic production, he says, and areas that had been weak, including home sales, "remained sluggish." Shenfeld adds that while the recovery is "reassuring," projected 2026 growth of 1.2% is still "too weak to expect much progress" toward full employment.(adriano.marchese@wsj.com)

(END) Dow Jones Newswires

May 15, 2026 11:55 ET (15:55 GMT)

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