Economic activity rises in April

GDP increased 0.3% in month-on-month seasonally adjusted terms in April, which was stable from March's reading and in line with the flash estimate. On an annual basis, monthly GDP rose 1.1% in April, which was better than March’s 0.6% expansion and marked the best result since May 2023.

April saw growth in 15 of 20 economic sectors, with mining, wholesale trade and hospitality registering particularly large expansions. Advance estimates indicated that real GDP rose 0.1% in May, buoyed by increases in manufacturing, real estate and finance.

Solid data for April and May suggests upside risks to our panelists’ quarter-on-quarter GDP growth Consensus Forecasts.

Summing up the latest data, TD Economics’ Marc Ercolao said: “The Canadian economy indeed started Q2 on solid footing, with early tracking suggesting trend-like growth for the quarter. This would roughly match growth in the first-quarter, which came in at 1.7% quarter-on-quarter annualized.”

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