Canada's Economy Beats Expectations with 3.3% Q2 Growth
The Canadian economy experienced strong growth in Q2, with a 3.3% annualized expansion according to Statistics Canada (StatCan). The revision of Q1 figures also shows that the quarter was slightly positive at 0.3% annualized, erasing a previously reported marginal decline.
Business capital investment saw a 2.3% increase in Q2, snapping a five-quarter streak of declines. Spending on machinery and equipment reached its highest level in two years, while investments in computers and peripherals jumped 16.7%. This growth was largely driven by the demand for data centre processing units.
The energy sector saw a boost from higher gas prices related to the Iran war, but manufacturing firms faced increased input costs. Despite this, the tariff-sensitive manufacturing industry expanded for a third consecutive month in June.
StatCan also reported broad-based growth across industries, including a 0.3% increase in real GDP in June. Tourism and hospitality sectors benefited from Canada hosting FIFA World Cup games in June.