Canada's economy grew 0.3% in May, second-quarter annualized growth estimated at 3.4%

Canada's economy expanded by 0.3 per cent in May, exceeding market expectations of 0.1 per cent, according to data released Friday by Statistics Canada. The increase follows a 0.6 per cent gain recorded in April, marking a second consecutive month of economic growth.

Statistics Canada said the latest figures point to an estimated annualized growth rate of 3.4 per cent for the second quarter of 2026. The estimate is preliminary and will be updated as additional data become available.

According to the agency, growth in May was led by a 1.0 per cent increase in the mining, quarrying, and oil and gas extraction sector. Construction activity rose 0.8 per cent, while manufacturing increased by 0.3 per cent. Real estate and rental and leasing activity also climbed 5.1 per cent, with housing market activity in Ontario and British Columbia contributing to the increase.

Statistics Canada's preliminary estimate indicates gross domestic product is expected to grow by a further 0.2 per cent in June. The agency noted the figure is subject to revision when final data are released.