Canada’s Q2 growth better than expected

Canada’s economy soared in the second quarter of 2014, according to new figures from Statistics Canada – although the manufacturing output didn’t reflect the improvement.

The jump in Canada’s gross domestic product of 3.1% was higher than the 2.7% economists had expected and followed sagging growth in the first quarter, which marked the economy’s worst performance in more than a year.

According to StatsCan, real GDP was up by 0.8% during the quarter ending June 30, up from a 0.2% increase in the first three months period of the year.

On a monthly basis, the economy grew in June by 0.3%.

StatsCan said economic activity increased in all sectors except non-profit institutions serving households.

“Exports of goods and services were up 4.2% in the second quarter, after edging down 0.2% in the first quarter,” StatsCan said. “This was the largest increase since the third quarter of 2011.”

Exports of goods rose 4.4%, with passenger cars and light trucks (+13.0%), farm and fishing products (+13.9%) as well as forestry products and building and packaging materials (+8.7%) contributing the most to the increase.

Imports of goods and services increased 2.7% in Q2 2014, following a 1.4% decrease in the first quarter. This was the largest increase since the second quarter of 2010.

“Manufacturing output declined 0.3% in June,” StatsCan said. “Durable-goods manufacturing decreased 1.1% as a result of declines in transportation equipment and, to a lesser extent, furniture and related products as well as machinery manufacturing. Non-durable goods manufacturing was up 0.8%, mainly because of a gain in chemical manufacturing.”

In the United States, by contrast, annualized GDP grew by 4.2% in the second quarter after contracting by 1.0% in the first quarter.