Big Inventory Drag Can't Slow Down Canada Economy -- Market Talk

0918 ET - Statistics Canada's GDP report for 2Q shows an economy booming just before an escalation of trade tensions. Overall, 2Q GDP grew 3.3% annualized, below market expectations but well ahead of the Bank of Canada's previous estimate. The data agency notes GDP growth would have been higher were it not for a sizable drag on inventories. The change in inventories stripped off 1.3-percentage-points from 2Q growth. Policymakers will likely be encouraged to see business investment rise in 2Q, or the first increase in five quarters. And final domestic demand -- which incorporates buying by households, business and government, excluding net exports and inventories -- jumped 3.9%, or the biggest increase in at least a year. (paul.vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

August 28, 2026 09:18 ET (13:18 GMT)