Gross domestic product grew at an annual rate of 2.6 per cent in the fourth quarter, led by the biggest increase in household spending in more than two years. Exports and residential and business investment also helped power the acceleration from a rate of 2.2 per cent in the third quarter. (The Logic)

Talking point: Statistics Canada’s official tally of economic output was substantially better than the Bank of Canada’s forecast for growth of two per cent. GDP also rose on a per person basis, as did household expenditures, suggesting the economy was generating momentum from something other than population growth. That momentum could stop in a matter of days if U.S. President Donald Trump makes good on his latest tariff threats. Yet, some 73 per cent of businesses that Statistics Canada polled in January and February said they were optimistic about their prospects over the next 12 months. That’s the kind of confidence that could help endure a trade war.