Economics
Consumer Cash Underpins Sturdy Canadian Economic Recovery
- GDP grows 5.4% annualized after revised 3.2% contraction
- Household spending up 18% as services reopen from Covid
Shoppers check out at a Montreal sporting goods store on Oct. 6. An early reading shows the Canadian economy grew 0.8% on the month.
Photographer: Graham Hughes/BloombergThis article is for subscribers only.
Canadians are flush with cash and ready to spend.
Quarterly economic activity numbers released Tuesday showed consumers powering the nation’s economy back to growth over the summer as most Covid restrictions were lifted. A surge in household spending fueled a faster-than-expected 5.4% annualized expansion in the third quarter -- a sharp comeback from a disappointing first half of the year when the nation’s expansion stalled amid a third wave of lockdowns.