The economy grew at an annualized rate of 3.3 per cent in the second quarter after six months of stagnation, driven by a jump in exports, household spending, and business investment, Statistics Canada reported. (The Logic)

Talking point: Revised data also shows the economy did not slip into a technical recession in the first quarter of the year, as Statistics Canada previously thought, but grew 0.3 per cent. The most recent quarter saw exports rise 3.6 per cent—the largest increase since the beginning of 2023. Statistics Canada credits the jump to an increase in passenger car and light truck exports, which coincided with an auto production rebound. Business investment was up as well, as spending on machinery and equipment rose to its highest level since the second quarter of 2024. The latest figures put Canada on stronger footing as it enters a new phase of trade hostility with the U.S. However, escalating trade tensions could test that resilience, according to a recent analyst note by RBC.

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