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The Canadian economy advanced by 0.5% in the second quarter of 2024, following a 0.4% rise in the previous period marking its second consecutive quarter of expansion. This growth was primarily driven by a 1.5% rise in government spending, fueled by higher wages, and a rebound in federal, provincial, and territorial government purchases of goods and services, which had previously declined. Business investment in machinery and equipment surged by 6.5%, led by increased spending on aircraft and transportation equipment. In contrast, household spending slowed to 0.2% in Q2, down from 0.9% in Q1, as higher spending on services (+0.5%) was offset by reduced purchases of goods (-0.2%). Exports and housing investment both declined, by 0.4% and 1.9% respectively. On an annualized basis, Canadian GDP grew by 2.1% in Q2, the highest since Q1 2023, accelerating from an upwardly revised 1.8% increase in the previous quarter and exceeding forecasts of 1.6%.