Economy beats expectations with 4.5% growth

Household spending, exports drive economy past expectations

Canada’s economy performed far better than expected in the second quarter, with growth at an annual rate of 4.5 per cent.

A consensus of economists had predicted the quarter would be 3.7 per cent, on par with the first quarter.

The two strong quarters give Canada its best economic start to a calendar year since 2002.

Statistics Canada says the increase in real gross domestic product in the second quarter was driven by household spending and exports, particularly in the form of energy products.

Exports expanded 2.3 per cent from April to June, up from 0.4 per cent in the first three months of the year.

The numbers also show households spent 1.9 per cent more on goods in the second quarter — the strongest gain since 2007.

The increase came even though housing investments contracted 1.2 per cent during a quarter that saw the introduction of a new tax on foreign buyers in Ontario. In comparison, residential real estate expanded 2.9 per cent in the first quarter.

The quarterly acceleration was also fuelled by an eighth-consecutive monthly increase in June that included a two per cent expansion in the construction sector — its largest gain in four years.

The Canadian Press

Just Posted

Search at Silver Creek property enters third day

A portion of the property has been cordoned off with black landscaping fabric

Dirty book sale

Penticton Public Library hosting its annual book sale

Regional district and city hoping to curb bad recycling behaviours

City of Penticton and the RDOS are teaming up to eliminate contaminates

October power disruptions planned

Summerland to upgrade switches at electrical substation

Man in custody linked to Silver Creek property search

Police are not saying how this search is related to Curtis Wayne Sagmoen’s current criminal charges

VIDEO: Sears liquidation sales continue across B.C.

Sales are expected to continue into the New Year

Police officer hit by car, stabbed in Edmonton attack back on job

Const. Mike Chernyk, 48, returned to work Thursday

UBC medical students learn to care for Indigenous people

Students in health-related studies to take course, workshop to help better serve Aboriginal people

Dorsett has 2 goals, assist in Canucks’ 4-2 win over Sabres

‘It was a real good hockey game by our group,’ Canucks coach Travis Green said.

Berry disappointed: Bear tries to eat fake fruit on woman’s door wreath

A Winnipeg woman has taken her berry-embellished wreath down, after a hungry bear visited her porch

B.C. search groups mobilize for missing mushroom picker

Searchers from across the province look for Frances Brown who has been missing since Oct. 14.

Have you heard about Black Press scholarships?

Up to 37 scholarships are awarded each year to students throughout British Columbia

Search for missing B.C. man a race against winter weather

David Jeff of Williams Lake was last seen in Kamloops during the chaotic wildfire evacuations

Bantam Vees tournament good prep for start of the season

Penticton hockey team heads into regular season with just one loss in nine exhibition games

Most Read