TORONTO, Sept. 18, 2020 /CNW/ – The BMO Business Activity Index (BMO BAI) from BMO Economics, which tracks monthly business activity with information on jobs, spending, sentiment and other indicators, rose 5.0 per cent in July, and is on pace for a 2.7 per cent gain in August. That would mark four consecutive months of strong growth from the pandemic low set in April, leaving the index 4.7 per cent below February’s peak.
“Activity by this measure had sunk as much 24 per cent at one point,” said Robert Kavcic, Senior Economist, BMO Capital Markets. “Thinking of it another way, about 80 per cent of the economic hole caused by the pandemic has been filled back up.”
Almost all indicators that make up the index continued to support the rebound in July and August. Hours worked posted solid gains as the job market recovers. The upside-surprise in housing