Canada’s economy expanded 0.8% in the second quarter of 2026, following an upwardly revised 0.1% increase in the previous three-month period, driven by stronger exports, household spending and business capital investment. Exports rose 3.6%, the largest increase since Q1 2023, led by a 27.0% jump in passenger cars and light trucks as Canadian auto production rebounded. Higher exports of metals, energy products, and industrial machinery and equipment also supported growth. Imports increased just 0.3%, after rising 3.1% in Q1. Household spending rose 0.8%, led by higher spending on investment services, passenger vehicles and rent. Business investment strengthened, with engineering structures up 2.3% and machinery and equipment spending reaching its highest level since Q2 2024. Investment in computers and peripherals surged 16.7%, mainly due to higher imports of processing units used in data centres.