Canada's Economy Sees Steady Growth in May

The Canadian economy grew by 0.3% in May, according to Statistics Canada. This marks the second consecutive month of growth for several key sectors, including construction, manufacturing, and finance and insurance.

The public sector also expanded in May, with a notable increase in office real estate activity, which rose 5.1% due to a warming spring housing market in Ontario and British Columbia.

StatCan's advance estimate suggests that the economy will see a solid rebound in the second quarter, with real GDP rising 3.4% on an annualized basis. This is higher than the Bank of Canada's forecast of 2.5% growth for the same period.

Economists like Marc Ercolao from TD Bank and Doug Porter from BMO expect growth to moderate in the second half of the year, citing factors such as high fuel costs and US trade uncertainty.