The unemployment rate fell to 6.5% in June, beating estimates for a flat reading…

… on the back of nearly 20K part-time adds, with next-to-no change in full-time employment after last month’s big print.

At the industry level, wholesale trade and food services led the way - offsetting a drop in manufacturing and construction.

While average unemployment duration ticked higher in the month (>23 weeks)…

… companies and governments breaking ground on new investments should help get the labour market unstuck over time.

Building permits fell 2% to $12.4B, well below expectations…

… driven by non-residential activity, which fell 6% or $306M sequentially - led by a $341M industrial decline concentrated in Ontario and Quebec.

That weakness carried modest gains in residential permitting, driven by nearly $540M of additional multi-family intentions in BC and Ontario.

Aritzia (ATZ) was up over 7% Friday after a blowout Q1, which delivered 43% Y/Y revenue growth (35% same-store)…

… and another quarter of margin expansion - thanks to markup improvements, better inventory management, and operating leverage.

The print drove a 400 bps bump to management’s full-year growth guide (now over 25% at the midpoint), as Aritzia’s performance keeps the multiple in check.

MTY Food (MTY) fell over 10% on its Q2 results, which missed small on revenue after the eleventh straight quarter of negative same-store growth…

… and missed big on profitability, with cost inflation in protein and 5% corporate margins weighing down the franchise segment.

Management is taking steps to course correct though, announcing the closure of 68 underperforming locations which should be margin accretive…

… but with its strategic review from November still ongoing, investors will need to see financial proof to give MTY a sustained bid.

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