Canada’s economy gains steam amid rising global uncertainty

Canada’s economy delivered robust growth in May, expanding 0.3 per cent month over month, exceeding expectations and building on April’s revised 0.6 per cent gain. June’s preliminary estimate of 0.2 per cent growth suggests that Q2 GDP could reach an annualized 3.4 per cent, a meaningful recovery after two consecutive quarters of weakness that had prompted recession concerns. Growth was broadly based, with 13 of 20 tracked sectors reporting expanded output. The resources sector and manufacturing led the advance, while the services sector grew 0.2 per cent. However, headwinds are mounting.