The Canadian economy accelerated during the first quarter of 2017, with Gross Domestic Product (GDP) growing at an annualized rate.
The growth was attributed to an increase in consumer spending, with household spending on goods seeing a large increase of 4.3%. Business investment also increased after a period of declines. This increase outweighed a decrease in exports, which were weak during the quarter, down at an annualized rate of 1.3%.
RFi Group’s data from the Canada Priority & Retail Banking Council shows that consumers are beginning to respond to the improving economic outlook, with 42% of consumers concerned (4 or 5 out of 5) about the Canadian economic outlook in the first half of 2017 - a decline from 51% 12 months ago.
42% of consumers are concerned about the Canadian economic outlook in the first half of 2017 - a decline from 51% 12 months ago.
The latest result has increased pressure on the Bank of Canada to raise interest rates, although the central bank is not expected to do so until 2018.
Source: Canada Priority & Retail Banking Council 2017 H1