Statistics Canada reported on Thursday that the Canadian economy surged past second-quarter expectations with growth at an annual rate of 4.5 per cent, its best start since 2002.
The GDP number may be all the Bank of Canada needs for a second interest rate hike this fall, possibly next month but most likely in October.
Most of the strength came from consumer spending, up almost two per cent in the quarter, and the strongest gain in 10 years.
A consensus of economists had predicted a second-straight quarterly growth reading of 3.7 per cent, according to Thomson Reuters, whereas the Bank of Canada had predicted second-quarter GDP to expand by three per cent in its latest forecast, released in July.
It amounts to the strongest first half-year for Canada’s GDP in 15 years, and heralds well for businesses — particularly retailers — for the coming fall and holiday season.
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