Ottawa: Canada’s economy roared back to life in the first three months of this year, as more business and household spending pushed growth to 3.7 per cent, the government’s statistical agency announced Wednesday.
The gross domestic product (GDP) was in line with expectations after an annualised 2.6 per cent uptick in the final months of 2016 placed Canada’s growth ahead of its G7 peers.
By comparison, US GDP grew 1.2 per cent in the quarter.
Purchases of passengers cars and trucks led the increase in consumer spending, according to Statistics Canada.
Spending on housing, water, electricity, gas and other fuels, recreation and culture, and clothing and footwear also increased, the agency said.
Housing growth was largely due to strong resale activity in the Toronto area, as well as more home renovations.
Rebound
Business investment in equipment and machinery, meanwhile, rebounded following declines in four of the previous five quarters.
The increased investment was concentrated in industrial machinery and equipment, computers, and medium and heavy trucks, buses and other vehicles.
Mineral exploration also rose sharply following eight consecutive quarters of decline, as oil and gas activity picked up.
However, exports edged down.
