Q2 GDP Up, Mainly Due to Growth in April - Statistics Canada

Statistics Canada today released figures on GDP growth for the second quarter of the year. Overall, the economy grew at an annualized rate of 3.3%. This follows a 3.1% increase in Q1. Most sectors were up although residential construction took a major hit, falling by 27.6%. This is the result of the Bank of Canada's interest rate hikes in the quarter, which drove higher mortgage interest rates. Non-residential construction grew by 2.6%, although most of this was due to an increase in engineering structures construction. The primary drivers of growth in the quarter were increased business investment in inventories; non-residential structures, machinery and equipment; and household spending on services and semi-durable goods. Notably, most of the growth took place in April, with May and June showing 0.0% and 0.1% month-over-month growth respectively. You can read StatsCan's report here. StatsCan's flash estimate for July calls for a 0.1% decline in GDP.