The DLI’s Bounceback Faltered in June, and Quebec’s Economic Weakness Will Continue

After returning to growth in May with a solid 0.7% rebound, the DLI weakened in June, rising just 0.2%. This slowdown is likely due to certain statistics confirming that consumer sentiment is cooling somewhat. On the housing market, the recovery in existing home sales seems to be ending, while housing starts continue to decline. The outlook is also worsening for businesses grappling with higher interest rates. This suggests that the DLI’s continued rise in June is likely to be fleeting. Despite the recent increase, there are no bright spots on the horizon, and it’ll be tough to avoid a contraction in real GDP.