Canada's Economy Grows 3.3% in Q2 Amid Broad-Based Expansion
The Canadian economy grew at an annualized rate of 3.3% in Q2, according to Statistics Canada (StatCan). This growth was broad-based across industries and marked a turnaround from the previous quarter's decline.
Business capital investment rose by 2.3% in the second quarter, snapping a five-quarter streak of declines. Spending on machinery and equipment reached its highest level in two years, with investments in computers and peripherals jumping 16.7%. This increase was attributed to the use of processing units in data centers.
The energy sector saw higher corporate incomes due to increased gas prices tied to the war in Iran, but this had a negative impact on manufacturing firms' input costs. Real GDP rose by 0.3% in June, with some sectors benefiting from Canada hosting FIFA World Cup games.