This strength was widespread as consumer and investment expenditures accelerated from the first quarter, while businesses also continued to add to inventories. Despite a substantial appreciation of the Canadian dollar relative to its US counterpart, exports also increased, outpacing first-quarter gains.
The economy grew at a 3.4% annualized rate in the second quarter, down slightly from the strong pace set in the first quarter. This growth was similar to that of the US economy (+4.0%), which gained substantial momentum in the second quarter.
Growth was concentrated in the latter two-thirds of the second quarter. Economic activity increased 0.2% in June, after growing 0.3% in May and remaining essentially unchanged in April. A significant increase in natural gas extraction and a rebound in oil and gas exploration propelled the growth in June.