Canada | Recovery Tracker enters May with positive momentum

The Canada Recovery Tracker (CRT) rose 1.4ppts to 87.4 in the week ended May 7 and is once again heading in the right direction. The health index has made steady improvements across all categories in recent weeks, and about half the population has received at least one dose as of late May. The mobility and activity indices are also trending upward again, and several provinces have now presented plans to fully reopen their economies in coming months. Eased restrictions should allow for a strong economic acceleration in H2 2021, supported by massive fiscal stimulus, accommodative monetary policy, and robust US growth.

What you will learn:

• The health index climbed 9.3ppts, as new cases per million, the positive test rate, and hospitalizations all improved for the second consecutive week. 
• The activity index jumped 9.3ppts, led by gains in consumer spending, air traffic, and restaurant bookings. 
• The sentiment index fell 1.3ppts, its seventh consecutive drop, as declines in durable goods and housing interest more than offset rising consumer confidence and travel interest.