- Statistics Canada reported on Friday that Canada’s economy contracted during Q2 2023, led by drop in new construction
- StatsCan said the economy stalled, having contracted at an annualized rate of 0.2 per cent in Q2
- Investment in housing continued to fall, down 2.1 per cent in its fifth straight quarterly decrease. New construction fell 8.2 per cent in the quarter, while renovation spending was also down 4.3 per cent
- However, business investment in non-residential structures rose 2.4 per cent in Q2, supported by a 3.3 per cent gain in spending on engineering structures
Statistics Canada reported on Friday that Canada’s economy contracted during Q2 2023, led by drop in new construction.
StatsCan said the economy stalled, having contracted at an annualized rate of 0.2 per cent in Q2.
Investment in housing continued to fall, down 2.1 per cent in its fifth straight quarterly decrease. New construction fell 8.2 per cent in the quarter, while renovation spending was also down 4.3 per cent.
Growth in real household spending fell to 0.1 per cent in Q2 compared with 1.2 per cent in Q1.
However, business investment in non-residential structures rose 2.4 per cent in Q2, supported by a 3.3 per cent gain in spending on engineering structures.
The Bank of Canada has been trying to bring inflation back to its target of two per cent and has hiked interest rates, causing Canadians to endure higher borrowing costs and spend less. The Bank of Canada’s latest interest rate decision is set for next Wednesday.
The reporting agency had previously said that the economy contracted by 0.2 per cent in June 2023.
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