Canada April GDP - Set for a healthy Q2
April Canadian GDP increased by 0.5%, even stronger than a preliminary estimate for 0.4% made with March data. The data comes after a 0.1% decline in March and suggests the economy is regaining momentum in Q2. The preliminary estimate for May is for a 0.1% increase.
Goods producing output rose by 1.2% after a 0.7% decline in March. Mining, quarrying and oil and gas extraction as particularly strong, up 2.9% after a 1.4% March decline. Much of the rise is due to the end of maintenance activity but higher energy prices may also be supportive. Manufacturing rose by 0.6% and construction by 0.7%, the latter the first rise in five months.
Services increased by 0.3% after a 0.1% rise in March and April is the strongest gain since July 2025. Transportation and warehousing at 0.9% and accommodation and food services at 1.0% saw the strongest gains.
Yr/yr GDP growth of 1.1% versus 0.4% in March is the highest since November 2025. If May GDP rises by 0.1% and June is unchanged annualized GDP growth in Q2 would be 2.3%, a return to respectable growth after two straight marginal declines.
