Canada GDP report

Canada's economy showed a modest growth of 0.2% in May after a 0.3% rise in April, driven primarily by a strong manufacturing sector which increased by 1%. Despite this, retail trade was the largest detractor, contracting by 0.9%, alongside a 0.6% decline in the mining and oil extraction sector. Preliminary data suggest a further 0.1% growth in June, leading to an anticipated annualized growth rate of 2.2% for the second quarter, surpassing earlier forecasts by economists. The Bank of Canada has lowered interest rates in response to this cooling momentum, aiming to stimulate the economy amid high inflation and sluggish household spending. The construction, real estate, and finance sectors contributed positively to this growth, while the overall economic activity still reflects challenges in consumer spending. As the economy expands, it remains below its potential, indicating space for continued monetary policy adjustments.