Net trade weakened as exports of goods and services fell by 0.4 percent, following a 0.5 percent increase in the first quarter. The decline in exports was driven by lower shipments of unwrought gold, silver, platinum group metals, passenger cars, and refined petroleum products.
Imports edged down by 0.1 percent, with decreases in industrial machinery, equipment, and refined petroleum products partially offset by higher imports of passenger cars and light trucks.
Residential construction continued its downward trend, falling by 1.9 percent in the second quarter, the largest decline since early 2023. This drop was driven by reduced investment in new construction, renovations, and ownership transfer costs, particularly in Ontario.
The GDP deflator, a measure of price changes, rose by 1.1 percent in the second quarter, led by higher prices for household consumption of services. Compensation of employees increased by 1.6 percent, driven by wage growth in health care, social assistance, education, and finance sectors.
The household savings rate reached 7.2 percent, as disposable income gains, mainly from wages and salaries, outpaced increases in consumption expenditure.