Canada’s economy posted growth of 0.5% qoq in Q2, slightly up from the 0.4% seen in Q1. This growth was driven by higher government consumption, increased business investment in engineering structures and machinery, and a rise in household spending on services. However, these gains were somewhat offset by declines in exports, residential construction, and household spending on goods. Notably, on a per capita basis, GDP declined by -0.1% in the second quarter, marking the fifth consecutive quarterly decline.
For June, GDP remained essentially flat, failing to meet expectations of a 0.1% mom increase. Goods-producing industries contracted by -0.4%, the largest decline since December 2023, with manufacturing and construction being the primary drags. In contrast, services-producing industries saw a modest 0.1% increase, continuing their growth streak for the third month in a row. Overall, 12 out of 20 sectors experienced expansion.
Advance information suggests that real GDP by industry remained unchanged in July. Declines in construction, mining, quarrying, and oil and gas extraction sectors were balanced by gains in finance, insurance, and retail trade, signaling a mixed economic outlook.
